Case Summary:
A class action suit was filed against a company ARB, which repossesses motor vehicles on behalf of creditors who have a security interest in the vehicles. A vehicle may contain personal property. When it does, ARB notifies the debtor by letter, telling him that it is holding his or her property in storage and that they must pay a $25 fee to get the property back or it will be destroyed or left in the vehicle when it is shipped back to the lender, who gets the vehicle as collateral. This practice was challenged as a violation of the Fair Debt Collection Practices Act. The trial court held it was not a violation; debtors appealed.

Decision:
The repossessor was acting as the lenders' agent; it was not seizing the vehicles for its own benefit, so the FDCPA is not relevant. ARB was acting as a constructive bailee for the personal property found in the vehicles. Under the common law, the bailee does not acquire a lien in the bailed good and so has no right to its possession. However, there is a right to compensation for reasonable expenses in taking care of the goods until reclaimed by the owner. If such compensation were not allowed, there would be no incentive to protect the goods.