Ron does not make a payment on his car loan for several months.The dealer,Star Auto,repossesses the car by towing it from a public parking lot.Ron sues Star for breach of the peace.Ron will probably
A)not prevail,because a creditor can repossess property in which it holds an interest if no threats or force are used against a debtor.
B)not prevail,because the repossession was not a breach of the peace.
C)prevail,because Ron has not formally defaulted on the car loan.
D)prevail,because the car was parked in a public lot when it was towed.

Question

Quizplus · Accepted Answer

If no threats or force were used in the repossession of the car, the creditor (Star Auto) has the right to repossess the property in which it holds an interest. However, if the repossession was done using force, threats or any other means that could be considered a breach of the peace, Ron can sue Star Auto for damages. In this case, the repossession was done by towing the car from a public parking lot. While this may not have been ideal, it does not constitute a breach of the peace, and therefore Ron is unlikely to prevail in his lawsuit.

Ron Does Not Make a Payment on His Car Loan