Don’t Cut Legal Corners in Repos
Given the number of legal requirements, credit unions can easily miss one or more when repossessing collateral upon a member’s default. The number of lawsuits over repossessions is increasing.
Because forms are often utilized for this process, one omission or error can turn into multiple violations. Increased class-action litigation in this area elevates the importance of reviewing forms and processes related to repossession.
Class-Action Implications. An error or omission in a credit union’s repossession process likely will be uniformly made across a segment of members, i.e., all residents of D.C. who had a vehicle reposed by the credit union during the past four years. That uniformity across a “class” of affected members enables a named plaintiff to allege claims in a lawsuit brought on behalf of himself or herself “and all others similarly situated.”
The filing of such a lawsuit is the first step in the class-action process. Certification of a specifically defined class of members is the next step.