Your Responsibility for Damages and Liability during a Car Repossession There is very little ambiguity on the question of liability when your car gets repossessed.repossession liability (ad) If your car is damaged during the repossession process, that damage should be the responsibility of the repossession companies. After repossession, they have this responsibility because they represent the lender who owns the vehicle. If a repossession company damages your vehicle while repossessing it, they have to pay for the damage12.
Consumer Protection: The law provides certain consumer protections to prevent unnecessary harm to consumers during the repossession of property. But if damages occur, the reposession company is on the hook—the original owner isn’t obligated to replace or repair those parts. The company is responsible for any damage e.g. a vehicle gets scratched or dented during repossession, the finance company has to pay for repairs12
Consumer Rights: When a vehicle has been damaged during repossession, the owner should be aware of his/her rights. If your car is damaged from being repossessed, then you have the legal right to sue a repo company for damages. But, it could be more trouble to chase this claim than the lender going after “axe man 12.”
Breach of Peace Guidelines: A repossession company that causes damage to a property by using forceful methods may be guilty of breach of peace. This is illegal and respossession agents can end up being charged or losing the right to repossess a vehicle 23
In Conclusion, although the lender is back in possession of their vehicle—The Repossession agency will remain liable for any damage caused during recovery. Consumers who are affected by inappropriate repossession practices should be aware of their rights and pursue legal recourse for damages.
