Indiana Consumer Law Group/The Law Office of Robert E. Duff announces the filing of a lawsuit against North Carolina-based American Lending Solutions Corp. and Indianapolis-based Last Chance Wrecker & Sales, Inc. concerning the wrongful repossession of a motor vehicle. ALS is a self-described “Skip Tracing/Repossession Management Firm” that works as a middleman between lienholders and towing companies. Last Chance is a towing company. The lawsuit, which has been filed in the United States District Court for the Southern District of Indiana, alleges that the defendants violated the Fair Debt Collection Practices Act (“FDCPA”) when they repossessed an Indiana consumer’s truck even though the finance company they were working for did not have a valid lien on it.
The FDCPA provides that repossession companies violate the law when they repossess a vehicle they have no right to repossess. In this case, the reason they did not have a right to repossess was because the finance company they were working for did not have a valid lien on the truck. However, a repossession company violates that FDCPA any time it repossesses a car it shouldn’t have. This could be because the repossessor chose the wrong vehicle, the consumer was not in default under the terms of the finance agreement or because the towing company breached the peace at the time the repossession occurred.