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Repossessions: 15.14.3 UDAP Remedies

Refusing to return property because of a false claim of a lien is a violation of the state unfair and deceptive acts and practices (UDAP) statute.283 Even if a lien is valid, a lienholder may violate the UDAP statute by imposing unwarranted conditions on release of the property so that storage charges mount.284 It is also a UDAP violation to sell property based on an invalid lien claim,285 or without complying with the protections of the stat

Repossessions: 15.14.4 Remedies When Lienholder Damages Property

While in possession of the lien property, the lienholder must maintain it in good condition and can be found liable to the property owner for any damages caused by negligent care, such as vandalism to an automobile parked in a garage lot.290 If the lienholder damaged the consumer’s property while holding it, the consumer has a remedy under the law of bailments.291 The level of care owed by the bailee depends on whether the bailor, the bailee, or both benefit from the arrangement.

Repossessions: 15.14.5 Other Remedies

The statute creating the lien may give the property owner a private cause of action against a lien claimant who fails to comply with the statute.294 When a lien sale is found to violate constitutional due process standards, a civil rights action under section 1983 may be available.295 State law may make attorney fees available to the prevailing party in lien litigation.296 Adding amounts to the lien that are not owed may violate a state debt

Repossessions: Introduction

This appendix is a summary of individual state laws relating to certain key aspects of repossession law. It includes the citation to each state’s enactment of UCC Articles 2A, 3, and 9, and describes significant non-uniform amendments, particularly to Article 9. It also includes the citation to the state’s consumer leasing law and rent-to-own law, if any. It lists any state restrictions on non-purchase-money security interests, grounds for default, acceleration, or repossession, and self-help repossession.

Repossessions: ALABAMA

UCC Article 9: Ala. Code §§ 7-9A-101 to 7-9A-809

Significant non-uniform amendments: Does not adopt expanded definition of “good faith”; amends § 9-604(d) so that no compensation is owed either to debtor or obligor for damage to real property caused by removal of collateral; effective date is January 1, 2002.

UCC Article 2A: Ala. Code §§ 7-2A-101 to 7-2A-532

UCC Article 3: Ala. Code §§ 7-3-101 to 7-3-605

Repossessions: ALASKA

UCC Article 9: Alaska Stat. §§ 45.29.101 to 45.29.811

Significant non-uniform amendments: Tracks uniform version closely.

UCC Article 2A: Alaska Stat. §§ 45.12.101 to 45.12.532

UCC Article 3: Alaska Stat. §§ 45.03.101 to 45.03.605

Consumer leasing law: None.

Rent-to-own statute: Alaska Stat. §§ 45.35.010 to 45.35.099

Repossessions: ARIZONA

UCC Article 9: Ariz. Rev. Stat. Ann. §§ 47-9101 to 47-9808

Significant non-uniform amendments: Adds special provision, Ariz. Rev. Stat. Ann. § 47-9527, giving right to $500 or treble damages plus attorney fees for willfully refusing to correct false record filed in a filing office.

UCC Article 2A: Ariz. Rev. Stat. Ann. §§ 47-2A101 to 47-2A532

UCC Article 3: Ariz. Rev. Stat. Ann. §§ 47-3101 to 47-3605

Repossessions: ARKANSAS

UCC Article 9: Ark. Code Ann. §§ 4-9-101 to 4-9-809

Significant non-uniform amendments: None.

UCC Article 2A: Ark. Code Ann. §§ 4-2A-101 to 4-2A-532

UCC Article 3: Ark. Code Ann. §§ 4-3-101 to 4-3-605

Consumer leasing law: None.

Rent-to-own statute: Ark. Code Ann. §§ 4-92-101 to 4-92-108

Repossessions: DELAWARE

UCC Article 9: Del. Code Ann. tit. 6, §§ 9-101 to 9-809

Significant non-uniform amendments: None.

UCC Article 2A: Del. Code Ann. tit. 6, §§ 2A-101 to 2A-532

UCC Article 3: Del. Code Ann. tit. 6, §§ 3-101 to 3-605

Consumer leasing law: None.

Rent-to-own statute: Del. Code Ann. tit. 6, §§ 7601–7616

Repossessions: DISTRICT OF COLUMBIA

UCC Article 9: D.C. Code §§ 28:9-101 to 28:9-809

Significant non-uniform amendments: None.

UCC Article 2A: D.C. Code §§ 28:2A-101 to 28:2A-532

UCC Article 3: D.C. Code §§ 28:3-101 to 28:3-605

Consumer leasing law: None, but D.C. version of Article 2A includes special consumer leasing provisions.

Repossessions: GEORGIA

UCC Article 9: Ga. Code Ann. §§ 11-9-101 to 11-9-809

Significant non-uniform amendments: Deletes manufactured homes from definition of goods (manufactured home may still meet general definition of goods); reduces to $10 the amount a creditor may charge for providing an accounting or list of collateral after providing one for free per six-month period; reduces to $10 the amount creditor may charge for providing explanation of surplus or deficiency after providing one for free; reduces $500 statutory damages to $250.

Repossessions: HAWAII

UCC Article 9: Haw. Rev. Stat. §§ 490:9-101 to 490:9-809

Significant non-uniform amendments: None.

UCC Article 2A: Haw. Rev. Stat. §§ 490:2A-101 to 490:2A-532

UCC Article 3: Haw. Rev. Stat. §§ 490:3-101 to 490:3-605

Consumer leasing law: Haw. Rev. Stat. §§ 481L-1 to 481L-4 (motor vehicles)

Repossessions: INDIANA

UCC Article 9: Ind. Code §§ 26-1-9.1-101 to 26-1-9.1-902

Significant non-uniform amendments: General rules for determining when a security interest loses purchase-money status apply to consumer transactions; requires secured party to give copy of financing statement to debtor within thirty days after filing, and provides $500 statutory damages for violation; adopts rebuttable presumption rule for both consumer and commercial transactions.

Repossessions: IOWA

UCC Article 9: Iowa Code §§ 554.9101 to 554.9809

Significant non-uniform amendments: None.

UCC Article 2A: Iowa Code §§ 554.13101 to 554.13532

UCC Article 3: Iowa Code §§ 554.3101 to 554.3605

Consumer leasing law: None.

Rent-to-own statute: Iowa Code §§ 537.3601 to 537.3624

Repossessions: KANSAS

UCC Article 9: Kan. Stat. Ann. §§ 84-9-101 to 84-9-809

Significant non-uniform amendments: General rules for determining when a security interest loses purchase-money status apply to consumer transactions; presumes that ten days is sufficient notice of disposition for both consumer and commercial transactions; adopts rebuttable presumption rule for both consumer and commercial transactions.

UCC Article 2A: Kan. Stat. Ann. §§ 84-2a-101 to 84-2a-532

Repossessions: KENTUCKY

UCC Article 9: Ky. Rev. Stat. Ann. §§ 355.9-101 to 355.9-809 (West)

Significant non-uniform amendments: Adds to § 9-610 that the acquisition of a repossession title by a secured party shall not be deemed a disposition of collateral.

UCC Article 2A: Ky. Rev. Stat. Ann. §§ 355.2A-101 to 355.2A-532 (West)

UCC Article 3: Ky. Rev. Stat. Ann. §§ 355.3-101 to 355.3-605 (West)

Repossessions: MAINE

UCC Article 9: Me. Stat. tit. 11, §§ 9-1101 to 9-1709

Significant non-uniform amendments: Requires perfection of security interests in consumer goods if purchase price exceeds $10,000; increases creditor’s response deadlines under §§ 9-208, 9-209, and 9-210 to twenty days; revises language about charge for explanation of surplus or deficiency; secured party must at least submit affidavit of compliance to obtain deficiency judgment, plus has burden of proof if consumer contests; adopts absolute bar rule.