WASHINGTON–Sen. Elizabeth Warren (D-MA) has launched a probe into the auto lending industry and repossessions. The investigation is focused on illegal and mistaken repossessions, when cars are seized even if borrowers are current on their bills or have reached agreements with lenders, according to CNN.
The investigation comes as cars are being repossessed at the highest rate since the Great Recession of 2008 and 2009.
Warren has sent letters to a dozen major industry players including Chase Auto, GM Financial, Toyota Financial Services and Ally Financial as part of the probe. She sought information on repo activity, error rates and practices, CNN reported.
‘Devastating Disruption’
“Car repossession is a devastating disruption to someone’s life – and it is inexcusable when that repossession is in error,” Warren wrote in the letters, which request responses by Feb. 16. The report noted that because Democrats are in the minority, Warren has no subpoena power and responses will be voluntary.
“The Trump administration has kneecapped the agency’s ability to protect consumers from auto repossession errors,” Warren wrote in her letters to the auto lending companies, referring to efforts by the administration to all but eliminate the CFPB.
The CFPB did not respond to a request for comment. CNN said it also reached out to the major auto lenders and trade associations addressed in Warren’s letters, including the American Recovery Association, National Independent Auto Dealers Association and American Financial Services Association. Chase declined to comment.
‘Losing a Paycheck’
In her letter, Warren stated, “Losing access to a car often means losing a paycheck.”
In 2024, 1.73 million vehicles were repossessed – the most since 2009, during the Great Recession, according to data from Cox Automotive and Experian cited in the CNN report.
Repossession data for 2025 is not available, but an executive from an industry trade group previously told CNN that repo volumes are close to Great Recession levels.
“It’s a target-rich environment at the moment,” George Badeen, who also runs Midwest Recovery and Adjustment in Detroit, said in an interview in October.
