Wisconsin Senate Passes Repossession Liability Limits Bill

Bill Pending Governors Signature to Become Law
On February 20^th, the Wisconsin State Senate approved SB613, paving the way for final approval by the governor. SB613 limits the liabilities on wrongful repossessions as well as the scope of considerations that can be taken into effect in determining a breach of peace. Two areas of litigation that have been rampantly abused in recent years.

Initially introduced on December 13, 2019, SB613, flew under the legislative radar for most of the repossession industry until the ARA penned and submitted it’s letter of support on January 16^th. The Bill, backed by the Wisconsin Automobile and Truck Dealers Association, proposes to limit liabilities on wrongful repossessions as well as the scope of considerations that can be taken into effect in determining a breach of peace.

Some highlights from the bills Analysis by the Legislative Reference Bureau are;

This bill creates provisions governing the determination of whether a breach
of the peace occurs when collateral or leased goods are repossessed, and creates
immunity from liability for a person who repossesses vehicles under certain
circumstances.
The bill specifies that the creditor or its authorized repossessor may not commit a breach of the peace and that the conduct or activities of the customer, debtor, or lessee, or any bystander, may not be considered in determining whether a breach of the peace has occurred.
Under the bill, no criminal or civil liability for wrongful repossession may be imposed against the independent contractor or its employee on the basis that the creditor was not authorized to repossess the vehicle…

AB669 has cleared both houses and the Judiciary Committee and is now being sent to the Governor for final approval. There is no indication published that the Governor will overrule this bill and it is expected to move into law very soon.