§ 3.15.4 Creditor's Liability for Acts of Repossession Company

• Jurisdiction: Arizona

§ 3.15.4 Creditor’s Liability for Acts of Repossession Company . It is now well- settled that the responsibility to repossess collateral without breaching the peace is a “nondelegable duty” for which the secured creditor remains liable. That is, hiring a so-called “independent contractor” will not shield the secured creditor from liability.

In Nichols v. Metropolitan Bank, 435 N.W.2d 637 (Minn. Ct. App. 1989), the trial court had held that the bank was not liable because the repossession company was an “independent contractor.” The court of appeals reversed. While the court agreed that the repossession company was an independent contractor and that the bank did not have the means or the right to control...