Repossessions: A Law Enforcement Point of View

• By: Stephen Pallas
• On: 11/14/2023 10:18:24
• In: Texas Posts
• Comments: 0

The Uniform Commercial Code and Texas Business and Commerce Code extend certain rights to lienholders when a customer defaults on a retail installment contract. These codes empower lienholders with a secured interest to collect the collateral peacefully. However, in the unpredictable terrain of BHPH, debtors often strategically secure their vehicles, making access challenging for lienholders.

The notion of a simple phone call resulting in law enforcement facilitating the retrieval of collateral is an appealing one. Yet, a retired law enforcement officer, a trusted TIADA confidante, dispels this idealistic vision. According to him, the reality is far from straightforward.

"When we are called to a situation like that, it's always he said, she said, and we just can't be the judge on that sort of stuff," he asserts. Unless a clear danger is present, law enforcement refrains from intervening until disputes are judicially resolved. He emphasizes the impracticality of involving the police in contractual disputes, highlighting that such matters are better left to the purview of the legal system.
 
Drawing attention to the fact that police involvement rarely stems from "peaceful" disputes, the law enforcement contact elucidates a viable solution – the judicial route. Lienholders armed with the appropriate lien and evidence can seek a court order. This order empowers law enforcement to seize and hold the vehicle until the court determines the rightful owner.
 
In essence, the remedy lies within the judicial system. This perspective sheds light on the intricacies of the often misunderstood interplay between lienholders, debtors, and law enforcement in the realm of vehicle repossession.

For a more legal explanation, see "What To Do When Peaceable Repossession Is Not Possible" (This article is taken from Texas Automobile Repossession: A Lien Holder's Legal Guide, with the permission of the author.  The book is available from TIADA.)