A news site is reporting that Rent-A-Center settled a lawsuit which contained allegations that one or more Rent-A-Center employees kicked in a consumer’s door related to attempts to collect past-due payment(s).  The news site alleges that the plaintiff alleged that a 21-month old girl, standing behind the door, was injured.  “The defendants maintain their denial of liability and the settlement was a compromise to avoid the expense of trial, said their attorney Ralph Dublikar.”  Here is a link to the story -

http://www.cantonrep.com/stark/canton/x1522837707/Local-Rent-A-Center-settles-lawsuit-over-employees-actions

We filed suit in El Paso last week against Buddy’s Furniture, a local deputy constable, and an apparent Buddy’s manager, related to alleged improper attempts to collect a debt.  Our client, a young man who had done business with Buddy’s, alleged in part that a fully-uniformed deputy constable appeared at his place of employment and threatened to arrest him if he did not make a payment on his account.  T. Dean Malone (Dallas) and Scott Vogelmeier (El Paso) are acting as co-counsel in the suit.  Here is a link to an El Paso television story in which Mr. Vogelmeier appears -

 http://www.kfoxtv.com/news/22481499/detail.html

Texas law is very specific regarding the manner in which personal property (including cars, trucks, boats, planes, televisions, washers, dryers, and other household items) may be repossessed.  A creditor or repossession company cannot breach the peace when repossessing personal property.  Moreover, under Texas law, a creditor is strictly liable for the actions of a repossession truck driver or repossession company for actions which breach the peace.

We see a “breach of the peace” situation occur most often when a vehicle is being repossessed for non-payment, or when a rent-to-own or finance company attempts to repossess rented property or loan collateral.  A breach of the peace by a tow truck driver might occur if he:

• Tows a car with a child inside
• Tows a car with a person on it
• Breaks through a fence or into a garage to obtain a car
• Causes a commotion
• Yells or makes loud noises
• Bangs on a door in the middle of the night

A breach of the peace by a rent-to-own or finance company might occur under similar circumstances.  There are various legal claims for breach of the peace during a repossession including:

• Violation of the Texas Debt Collection Act
• Invasion of Privacy
• Unreasonable Collection Efforts
• Uniform Commercial Code

Do not try to stop repossession agents on your own.  If there is a dispute regarding a bill, take it up with the creditor before the repossession occurs.  However, if it has reached the point that you are faced with a repossession agent threatening physical injury, call the police.  The police will at times refuse to get involved in what they view as “civil matters,” but no one should be subject to threats of or actual physical injury.

Most rent-to-own stores rent merchandise to consumers, allowing payments to go toward the purchase price.  The total rent payments can at some stores far exceed the retail value of the rented merchandise.  A Vermont State Senator has introduced a bill that would provide regulation of the rent-to-own industry in Vermont.  Here is a link to a new story about the bill -

http://www.timesargus.com/article/20100117/BUSINESS/100119976/1006/BUSINESS