What Counts as a Breach of the Peace in a Repo?

Repossession is a common practice in the world of finance, especially when it comes to cars. While creditors have the legal right to repossess a vehicle, they must do so without breaching the peace. While Texas, Alabama, and all other states follow the Uniform Commercial Code, determining what constitutes a breach of the peace during a repo is not always clear-cut. It goes beyond physical violence and encompasses other forms of intimidation, scare tactics, and other actions as well. In this article, we will explore what counts as a breach of the peace during a repossession and what consumers should do when faced with such situations.

One common example of a breach of the peace during a repossession is when the creditor uses physical force to take possession of the vehicle. This can include breaking into a locked garage or using excessive force to remove the debtor from the car. However, it is important to note that even verbal threats or intimidation can also be considered a breach of the peace. Even proceeding after a consumer simply says “you need to leave” can be a breach of the peace.

Another form of breach of the peace during a repo is when creditors enter private property without permission. While they are legally allowed to repossess vehicles in public places, such as on a street, they cannot enter private property without consent. If they do so, it could be seen as trespassing and therefore qualify as a breach of the peace.

In addition, if repossession agents use deception or fraudulent tactics to gain access to the vehicle, it can also be considered a breach of the peace. This could include misrepresenting themselves or their intentions, or using fake documents to gain entry. Such actions undermine the credibility and legality of the repossession process. Pretending to be law enforcement or some other state agency is one of the most egregious ones.

If a creditor breaches the peace during a repo, they must stop immediately. Continuing with the repossession process after a breach of the peace can result in legal consequences for the creditor even if they have the right to take the car.