We don’t normally write about automotive repossessions here, but it is a Fair Debt Collection Practices Act case and it is the Court of Appeals for the Second Circuit, so it’s probably got something worthwhile for companies in the accounts receivable management industry to know, right? The Second Circuit has upheld the dismissal of an FDCPA case against a repossession company that the plaintiff claims breached the peace and thus made the repossession unlawful.
The Background: The plaintiff was walking out of mall with her young son when she saw that her vehicle was being blocked by a vehicle owned by the repossession company. The driver of the repossession vehicle informed the plaintiff that the vehicle was being repossessed and that a tow truck was on the way.
- The plaintiff asked if she could drive her son back to Ronald McDonald House, where he resided, for medical treatment. The repossession agent said the plaintiff could drive the vehicle there, at which point it would be repossessed.
- The plaintiff objected to the repossession when they arrived at Ronald McDonald House, but turned over the keys and let the repossession occur.
The Original Complaint: The plaintiff accused the defendant of violating Section 1692f of the FDCPA because it allegedly breached the peace, which is illegal when conducting a repossession. The plaintiff’s verbal objections to the repossession were her claims that the peace had been breached.
- A District Court judge granted the defendant’s motion to dismiss on the grounds the plaintiff failed to state a claim.
The Appeal: Ultimately, a breach of the peace occurs when the public quiet is disturbed and the tranquility that citizens of a community have a right to enjoy is interfered with. No court has yet to find that verbal objections on their own rise to the level of a breach of the peace, the Appeals Court ruled. Verbal objections that then escalate to violence or threats of violence cross that threshold.
