Louisiana Governor Expected to Sign Bill Facilitating Motor Vehicle Repossession

HARAHAN, La. – SB 768, a bill that provides procedures for taking repossession of a lender’s collateral without judicial process, is expected to be signed by Louisiana Governor Kathleen Blanco this week. Sponsored by Sen. Ken Hollis (R-Metairie), the bill was passed 35-1 by the Senate and signed by the Speaker of the House last Friday. With the Governor’s signature, the measure would become effective Jan. 1, 2005. The bill enables state- and federally-chartered financial institutions and other appropriately licensed, regulated lenders to send notices of repossession to borrowers after nonpayment of two consecutive loan or lease payments. The measure also provides for the licensing of repossession agents and a 10-day period for recovery of the borrower’s personal property from the vehicle. Under current Louisiana law, a lender is required to notify a delinquent borrower, hire an attorney, file a lawsuit, have it served and obtain a judgment. Only then can local law enforcement officials or a repossession agent repossess the property. More than 90 Louisiana credit unions responded to the Louisiana Credit Union League’s Call to Action in support of the bill.