In Duncan v. Asset Recovery Specialists, Inc., 907 F.3d 1016 (7th Cir. 2018), the Court found in favor of a repossession company, ruling that the company did not violate the Fair Debt Collection Practices Act (FDCPA) by charging an administrative fee for the return of personal property from a vehicle they had repossessed on behalf of a lender.
The FDCPA, § 1692f(6), prevents a debt collector from “[t]aking or threatening to take any nonjudicial action to effect dispossession if property if . . . there is no present right to possession of the property claimed as collateral through an enforceable security interest.” 15 U.S.C. § 1692f. Pursuant to § 1692a(6), a Creditor may be liable for the conduct in violation of the FDCPA by a repossession agent acting on behalf of the Creditor.
Summary judgment was granted for the repossession company as the debtor failed to establish a successful claim under § 1692f: did not provide any evidence refuting that Repossession Company or Creditor attempted to collect a $100.00 payment from the debtor and the debtor did not provide any evidence showing that the $100 administrative fee was a demand for repayment on the auto loan owed to Creditor.
