A recent ruling in LaValley v. Skyline Recovery Service Inc. (D. Mass. June 24, 2025) marks a pivotal development for lenders, servicers, and recovery companies operating in Massachusetts. The federal court denied summary judgment in a wrongful repossession case, allowing a jury to determine whether a debtor’s verbal objection—without physical confrontation—constitutes a ‘breach of the peace.’
This decision expands consumer protection standards under Article 9 of the UCC and underscores the importance of halting repossession activities once a borrower clearly objects. Ignoring verbal protests may now expose lenders and agents to liability under state and federal law.
According to S&P Global Mobility, national repossession volumes are up 23% year‑over‑year, while CFPB reports show a surge in consumer complaints tied to wrongful repossessions. These trends heighten compliance pressure for lenders across all markets.
ALAW recommends immediate policy reviews and refresher training for recovery vendors to ensure compliance with evolving UCC standards and the Massachusetts Consumer Protection Act.
For guidance on compliance with Massachusetts repossession standards, contact the ALAW New England team at www.alaw.net or call (781) 269-6501. For additional information contact Joseph A. Camillo Jr. at [email protected].
This publication is for informational purposes only and does not constitute legal advice.
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