Auto lenders in almost all cases hire a third-party repossession agent to pick up a vehicle when the loan goes into default. Under the law, these third-party repossession companies are agents of the lenders. Therefore, a lender may be held liable for improper actions taken by its agents. As such, lenders should make sure their agreements with repossession companies contain provisions to protect them in the event the agent takes action that violates the law.

This article will touch on two common issues related to car repossessions—whether the agent lawfully repossessed the car, and whether the repo agent can withhold returning personal property from the car to the owner.

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