Prior Notice for the Repo of a Leased Car?

The Boston Globe has a column regarding whether financial institutions should have to give prior notice to a consumer before they can repossess a leased car. Leases are handled differently that the standard purchase/financing of a car so the idea hasn’t been thought out as much. Also, Massachusetts has more consumer-friendly state laws that most states — including Alabama and Texas. This includes a right to cure default prior to repossession.

The person providing argument in favor of requiring notice is State Senator Paul R. Feeney:

The common-sense debtor protections state law affords to buyers financing the purchase of their vehicles should be granted to those that lease as well. Currently, you can make years of on-time payments for your leased vehicle, but with no notice or opportunity to correct a mistake, you may one day discover your family car is not in the driveway where you left it the night before. No letter, no phone call, no text, not even an e-mail to give you a fighting chance to make things right.

And arguing against requiring prior notice is Senior vice president for the American Financial Services Association Danielle Fagre Arlowe:

For lenders, working with borrowers to avoid defaults is far preferable to costly repossession. An ongoing dialogue between the lender and its customer is the best way to identify a mutually beneficial arrangement for the consumer to retain the vehicle while satisfying their financial obligation.

Lenders put a considerable amount of time and effort into proactively reaching out to customers experiencing financial difficulty. Their goal is to work with them to resolve the account issues. Financial institutions recognize that individuals’ situations vary, so they work on a case-by-case basis to find ways to resolve any payment difficulties whenever possible.