Due to technological developments, secured parties increasingly rely on technology, such as GPS tracking devices and starter interrupt devices, when repossessing collateral after a debtor’s default. In response, certain states have modified Section 9-609 of the Uniform Commercial Code to address the use of technology when repossessing collateral by limiting or restricting a secured party’s use of electronic self-help when recovering collateral after a debtor’s default.
Pursuant to Section 9-609 of the Uniform Commercial Code, a secured party may, after default, take possession of collateral or, without removal, render equipment unusable and dispose of collateral on a debtor’s premises. If a secured party seeks to take possession of collateral after default without judicial process, the efforts of the secured party to obtain possession must not result in a breach of the peace. Due to technological developments, lenders and lessors increasingly rely on technology, such as GPS tracking devices and starter interrupt devices, when repossessing collateral. However, lenders and lessors must remain cognizant of the manners in which certain states have modified Section 9-609 of the Uniform Commercial Code to address the use of technology when repossessing collateral, as well as states’ increasing focus on the use and collection of consumer data when determining whether to incorporate the use of technology in their repossession process.
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