Conflicting Repo Rulings Prompt ARA Call for Industry Reform

Official Statement Regarding Recent Federal Court Rulings on Breach of the Peace and Repossession Standards

October 23, 2026 – The American Recovery Association (ARA) is aware of the recent federal court ruling in Hart v. Hill & Associates of Georgia, Inc., which addresses the legal limitations of self-help repossession and, specifically, the impact of a verbal objection.

ARA acknowledges that fact allegations in litigation are precisely that: allegations. With that in mind, this ruling reinforces a position the ARA has advocated for years: Professional training, continuing education, accountability, and meaningful industry oversight are not optional. They are essential to protecting consumers, recovery professionals, lenders, and the integrity of our industry. Clarity and consistency are key.

The Need for Clearer Standards

The Hart ruling raises two important questions our industry must address. First: At what point is a repossession legally considered complete? Second: What is the impact of a verbal objection on present right of possession?

Regarding completion, what are the appropriate benchmarks? When the vehicle is hooked? When it is lifted from the ground? When the recovery equipment has established control? Or when the vehicle has been removed from the immediate area? The answers differ state-by-state and from one federal jurisdiction to the next.

As for the impact of a verbal objection, a separate recent federal court ruling out of New Jersey reportedly reached a different conclusion than the Hart court, rejecting the argument that a verbal objection alone is sufficient to establish a breach of the peace during a repossession and instead adopting a totality of the circumstances test. So, it would appear we now have at least two federal district court rulings reaching different conclusions on a critical issue affecting recovery professionals nationwide.

Although these decisions may reflect differences in applicable state laws and the specific circumstances of each case, they highlight a significant concern for our industry: How can recovery professionals be expected to consistently navigate these situations when courts appear to interpret the legal requirements differently?

This is precisely why the ARA believes greater clarity is necessary. Recovery professionals should not be left to interpret conflicting legal standards while making split-second decisions in potentially dangerous situations.

The ARA believes these rulings warrant further examination and discussion among industry professionals, legal experts, lenders, and lawmakers to help establish clearer guidance regarding verbal objections, breach-of-peace requirements, and when a repossession is legally considered complete.

Recovery professionals should not be left to interpret these critical legal distinctions without proper training, guidance, and established procedures.

State Licensing and Mandatory Training

The ARA continues to advocate for meaningful state licensing requirements that incorporate mandatory training, education, and professional standards.

Licensing alone is not the answer. A licensing program without meaningful educational requirements, accountability, and enforcement does little to improve the professionalism of our industry.

We believe states should consider requirements that include initial certification, continuing education, background screening, demonstrated knowledge of applicable laws, and established standards governing breach-of-peace situations.

These requirements are not intended to create unnecessary barriers to entry. They are intended to ensure that individuals entrusted with recovering collateral understand their legal responsibilities and the potential consequences of their actions.

We cannot continue to expect professional results without establishing and enforcing professional standards.

A Call to Our Lenders and Industry Partners

This ruling should also serve as an important reminder to the lending institutions, forwarding companies, and other organizations that rely on the repossession industry.

Compliance is a shared responsibility.

Recovery agencies and their employees are responsible for conducting lawful and professional recoveries. However, lenders and forwarding companies play an equally important role in establishing expectations and ensuring that the companies they engage meet appropriate professional standards.

We encourage our lending and forwarding partners to continue strengthening their compliance requirements by prioritizing properly trained and certified recovery professionals, supporting continuing education, and requiring meaningful oversight of the agencies performing work on their behalf.

Compliance should not simply be a document signed during onboarding or a box checked during an annual review. It must be an ongoing commitment supported by education, verification, and accountability.

The ARA also believes that lenders and forwarding companies should actively support efforts to establish meaningful state licensing requirements and nationally recognized professional standards.

When properly implemented, these measures protect everyone involved, including the consumers whose vehicles are being recovered.

Moving Our Industry Forward

The American Recovery Association does not believe that the actions of one recovery company should define an entire profession. Every day, thousands of dedicated recovery professionals perform a difficult and often dangerous job while maintaining high standards of professionalism and compliance.

However, we must also recognize that incidents like this have consequences extending well beyond the individuals involved. They affect public perception, expose lenders and recovery companies to significant liability, and reinforce the need for stronger professional standards.

As an industry, we cannot afford to be reactive. We must be proactive in establishing the expectations, education, and accountability necessary to prevent these situations.

The ARA remains committed to working with lawmakers, regulatory agencies, lenders, forwarding companies, and fellow industry associations to advance meaningful training requirements, state licensing initiatives, and consistent professional standards.

Our goal is not simply to defend the repossession industry when incidents occur. Our goal is to help establish the standards that prevent these incidents from occurring in the first place.

If we want our industry to be recognized as a profession, we must continue taking the necessary steps to operate as one.

About the American Recovery Association (ARA)
The American Recovery Association is the world’s largest association dedicated to the advancement and professional development of the recovery and remarketing industry. ARA provides compliance support, education, and advocacy for hundreds of recovery professionals nationwide. ARA is the founder and host of the annual three-day North American Repossessors Summit (NARS) — the largest repossession conference in the industry. For more information, go to repo.org or call (972) 755-4755.