Philadelphia Settles Civil Rights Lawsuit – Pays Repo Agency and Accelerates Electronic Notice Pilot Program

Settlement resolves federal civil rights case as city launches faster electronic repossession reporting and begins overhauling police procedures.

FOR IMMEDIATE RELEASE

PHILADELPHIA — The City of Philadelphia has reached a monetary settlement in a federal civil rights lawsuit involving claims that an repossession agency owner was unconstitutionally detained after an incident tied to noncompliance with a police department policy.

But the resolution is about more than closing a case. Philadelphia is also moving quickly to reshape how the police are notified when vehicles are repossessed, launching an electronic notification pilot program for repossessions conducted in the city.

Since the lawsuit was filed, PARA and Giannone Companies have met with city officials to outline their concerns and discuss options moving forward. Those discussions helped set the groundwork for both the settlement and the city’s accelerated notification initiative.

The pilot program is set to start effective August 3rd and run until January 31, 2027. It will operate in only 4 of the city’s 21 police districts, allowing the city to test the program in limited areas before evaluating whether it should be expanded.

City officials have encouraged PARA and Giannone’s to get as many repossessors as possible to participate in the pilot, with the goal of producing more accurate reporting and stronger data during the trial period.

In addition to the notification pilot, the city has agreed to change parts of the police directive involving repossessions. The updates include guidance related to repossessed vehicles in stolen status, vehicles wanted for major crimes and definitions for officers on who is authorized to repossess vehicles, as well as where repossessions can be conducted and when a repossession is legally completed.

Giannone Companies, meanwhile, said its state court lawsuit against the city remains open. Company officials claim the case is still open as a matter of procedure, and they say they are looking to continue working with the city to bring that matter to a positive resolution. They also emphasized that they remain guided by their attorney in that matter.