For some years now, Wisconsin has been ground zero in the world of frivolous repossession breach of peace lawsuits filed by a small army of litigation attorneys with a forest of billboards sprouting up all across the state. The proliferation of these suits and their relative ease to settle, has created a very difficult environment for both lenders and repossession agencies to operate in. Fortunately, in December, new legislation was introduced aimed at curbing some of these excessive legal actions.
After it’s initial introduction on December 13, 2019, SB613, now AB669, has been flying under the legislative radar for most of the repossession industry. This Wisconsin State 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 now sits in the Judiciary Committee pending final approval before referral to the Governor for final approval. While under the radar of the repossession industry and most lenders, it has come to the attention of a special interest group that stands in obvious opposition, Legal Action of Wisconsin, which is a non-profit law firm that offers free legal assistance to low-income people and organizations in civil matters in Wisconsin.
With the cash cow of this often frivolous litigation industry at risk, it will be interesting to see what additional opponents come into play and what affect they have on it’s final outcome. If passed, it could provide some relief to repossession agency owners and lenders in Wisconsin who have been under siege with these lawsuits for some time now.
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