As an auto finance professional, it is essential to stay compliant with vehicle recovery laws and regulations to avoid legal repercussions and maintain a solid reputation in the community.
According to a recent report by the Consumer Financial Protection Bureau (CFPB), there has been an increase in both auto loan delinquencies and repossessions post-Pandemic. The CFPB has taken action against lenders and recovery companies for engaging in illegal practices such as repossessing vehicles without proper notice or court orders. In 2020 alone, the CFPB ordered over $21 million in consumer relief for these violations. Remember, having an attorney or legal advisor review repossession policies, procedures, and practices is crucial to ensure compliance.
Here are some essential suggestions to help avoid legal problems: