[comp.org.eff.talk] Repo law

jgd@rsiatl.UUCP (John G. DeArmond) (10/30/90)

jet@karazm.math.uh.edu (J. Eric Townsend) writes:

>The real question is, what can legally  happen during a reposession?

>If I don't pay my Visa bill for a while, can they (legally) come into
>my house and take stuff?  If I didn't want to let my creditor in, I would
>assume there's some way to get an officer of the peace to legally force
>entry so that repossesion could occur. (Something like having an OotP evict
>a tenant.)

<Caution: Your mileage will vary by state.>

Repo law as explained to me by my attorney is interesting.  For the 
sherrif to seize property, there must be a specific court order which
is separate from a judgement or a default.  However you as the creditor
can do a lot if the debtor allows you to.  Yes, that seems contradictory
but that's the way it is.  In Georgia and Tennessee, the two states 
I'm familiar with, one can do just about anything necessary to repo
as long as it does not "disturb the peace".  Thus, if I'm repo'ing
your car, I can slip in under the cover of night and tow it right off.
If you run out and object, I can continue as long as you don't make 
too much noise!  If you resist, I can defend myself but I have to 
stop the repo.

Likewise, If I knock on your door and you allow me to walk in and don't
object while I load up all your possesions, I'm legal.  There is no
parity involved.  I can take everything you've offered up as collateral
(which in some case, can be everything you own.) for a small debt.
In some instances, I don't even have to worry about who owns the 
property.  For instance, if I'm repo'ing your office in settlement
of a judgement, I can take everything in sight, including the leased
desk, and the debtor is responsible.

In the case of the software company involved here in this discussion, my
opinion is that they are on very solid ground, assuming that they
substantially met the specifications and lived up to the contract
requirements.  Software specifications can be rather nebulous, especially
when the client is cheap and does not want to pay for a detail spec. 
This will certainly be an interesting case to watch.

John



-- 
John De Armond, WD4OQC  | "The truly ignorant in our society are those people 
Radiation Systems, Inc. | who would throw away the parts of the Constitution 
Atlanta, Ga             | they find inconvenient."  -me   Defend the 2nd
{emory,uunet}!rsiatl!jgd| with the same fervor as you do the 1st.