March 29, 2019

Current Issues in Auto Finance: Driving through Developments in Litigation and Enforcement

Post-default collections and asset recovery is a high risk part of any creditor’s activities.  One area of post-default collections that poses significant risk is the use of form letters under states’ Uniform Commercial Codes.  Because a creditor will often use the same form letters to pursue all of its collections, the scope of potential liability is great.  In an effort to comply with the law and to manage risk, a creditor may use “safe-harbor” notices set out in state versions of the UCC.  However, an ongoing case from the First Circuit Court of Appeal suggests that there may be no such thing as a “safe harbor.”  In addition, two ongoing Missouri Circuit Court Cases have held that creditors may not recover interest on an underlying consumer credit agreement after default until a final judgment has been ordered.  The nationwide scope of a class certified in one of the Missouri cases demonstrates the wide scope of the risk that creditors face in post-default collections.

Premium Content For:
  • Business Law Section
  • CL1903SPR - 2019 Business Law Section Spring Meeting