When a purchaser defaults on a secured loan, a creditor may exercise various options involving self-help or commonly referred to as the REPOSSESSION PROCESS under Michigan state law, the Uniform Commercial Code (UCC) and the Fair Debt Collection Practices Act are the three main governining bodies of law that attach to such processes.
In Michigan, "self-help" reposessions are governed by Section MCL 440.9609.
The main component to insure success under the SELF-HELP section of the statute is that the Creditor-Vendor may attempt to physically repossess its security intrest as long as there is NO BREACH OF THE PEACE. This means that under the statute a Creditor or Vendor may not use conduct or behavior that is oppressive, threatening or confrontational.
Further, the repossession agent may not pretend to be somebody they are not, falsify thier identity or gain entry tot he party's property in a manner which is objectionable and threatening to the owner or party under the contract.
The following Michigan cases involve the issues of SELF HELP:
Hill v. Michigan National Bank, 58 Mich. App. 430 (1975)- case involves BREACH OF PEACE, DUE PROCESS RIGHTS,
Siwka v. Smart Recovery LLC, 2010, WL 37198997 4 - case involves :
BREACH OF PEACE
FDCPA ALLEGATIONS,
NOTICE OF REDEMPTION (MCL 440.9614)
ISSUES, DISPOSITION OF COLLATERAL ISSUES (MCL 440.9610), EXPLANATION OF DEFICIENCY (MCL 440.9616).
CONTACT US AT TARGOSZ WALKER LEGAL GROUP should you have any questions regarding this subject matter. We will be hapy to discuss.
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VICTORIA TARGOSZ
248-443-5250
