Repo Risk: Beware Illegal Car Repossessions

Used cars are suddenly so much more appealing than they used to be. With prices near historic highs and inventory near record lows, some officials are warning people with car loans that unscrupulous lenders may use more aggressive - and possibly illegal - tactics to repossess cars and beef up their lots. At the same time, brisk sales for nearly all vehicles could make the alternative - working with borrowers behind on payments - a less appealing option.

The  says it will work to prevent illegal repossessions in the heated automobile market. CFPB says it has seen “illegal seizures, sloppy record keeping, unreliable balance statements and ransom for personal property,” where  loan servicers hold belongings found inside repossessed vehicles and  refuse to return them unless the property owner pays