Wrongful Repossession – What are the rules?

There are basis rules that apply to repossessions.  Repossessions are covered by the Uniform Commercial Code and the New Jersey Consumer Fraud Act.  The specific act of repossession (breach of the peace) is covered and then the notices that are required under the Uniform Commercial Code.  There are two distinct areas.

Within notices there is the pre repossession notices, the two post repossession notices and the resale of the vehicle.  The general provision of the Consumer Fraud Act also apply.

Wrongful repossession, resale of the car, New Jersey consumer law

Under New Jersey law, a company repossessing a vehicle is not entitled to breach the peace while repossessing this vehicle.  This means that the repossession company cannot break any specified local, state or federal law while repossessing your vehicle.  As an example, if one were to prohibit the repossession company access to the vehicle and the repossession company were to assault or otherwise cause bodily harm to the individual objecting to the repossession, this would be a breach of the peace for which the repossession company and the finance company who contracted the repossession would be liable.  This breach of the peace/non-delegable theory assures that the party who is ultimately benefiting from the repossession is subject to all the liabilities and the downsides of this repossession.  It is only fair to charge the finance companies who are attempting to retake the vehicle with properly investigating and assuring that the vehicle is repossessed in a commercial and reasonable and proper manner under all applicable state and local laws.