Warren Launches Senate Probe into Auto Repossession Surge, Citing "Devastating" Errors
WASHINGTON – A sharp rise in vehicle repossessions, reaching levels not seen since the depths of the Great Recession, has prompted a congressional crackdown. Senator Elizabeth Warren (D-Mass.) announced a sweeping investigation Wednesday into the auto lending industry, targeting what she calls "inexcusable" illegal and erroneous seizures of cars from borrowers.
The probe, confirmed by a Senate Banking Committee spokesperson, comes as economic pressures squeeze American households. Data from Cox Automotive and Experian shows 1.73 million vehicles were repossessed in 2024—the highest annual total since 2009. Industry executives privately acknowledge 2025 volumes are nearing similar crisis-era levels.
"Car repossession is a devastating disruption to someone’s life – and it is inexcusable when that repossession is in error," Warren wrote in letters to a dozen major lenders, including Chase Auto, GM Financial, Toyota Financial Services, and Ally Financial. She demanded detailed information on repossession practices, error rates, and internal controls by February 16.
The investigation zeroes in on cases where vehicles are seized despite borrowers being current on payments or having active forbearance agreements with lenders. This systemic issue, Warren argues, has been exacerbated by the weakened state of the Consumer Financial Protection Bureau (CFPB), which was gutted during the Trump administration. The CFPB fined Wells Fargo $1.7 billion in 2022 for, among other violations, illegally repossessing vehicles.
"The Trump administration kneecapped the agency’s ability to protect consumers from auto repossession errors," Warren asserted in her letters.
The repo surge is fueled by a punishing combination of record-high vehicle prices and stubbornly expensive borrowing costs. The average new car transaction price breached $50,000 last fall, while the average used car listing hovered near $26,000. Despite Federal Reserve rate cuts, auto loan APRs remain elevated, with subprime borrowers bearing the brunt. Fitch Ratings reports the subprime delinquency rate hit 6.74% in December—a historic high.
"Losing access to a car often means losing a paycheck," Warren noted, highlighting the cascading consequences for families who rely on their vehicles for work.
Industry response has been measured. Ed McFadden, a spokesperson for the American Financial Services Association, stated member companies "make every effort" to work with borrowers and that repossession is "a process of last resort." Chase declined to comment, while other major lenders did not immediately respond.
Voices from the Ground:
"This probe is long overdue," says Marcus Chen, a financial counselor in Cleveland. "I've seen clients with perfect payment histories have their cars towed because of lender system glitches. The human cost—lost jobs, missed medical appointments—is immense."
"Senator Warren is grandstanding and vilifying an industry that follows the law," counters David Riggs, a former auto loan officer from Tampa. "Repossessions are a symptom, not the disease. The real issue is people buying cars they can't afford, encouraged by years of loose credit. This is a market correction, however painful."
"It's about accountability," argues Priya Sharma, a legal aid attorney in Phoenix. "When a single mother's car is wrongly taken because a bank can't keep its records straight, that's not a 'market correction'—that's corporate negligence. The CFPB needs its teeth back."
"They're vultures," snaps Jake Morales, a rideshare driver from Detroit whose car was repossessed in error last year. "It took me three weeks and a lawyer to get it back. I lost $2,000 in income. Warren should throw the book at them. These aren't mistakes; they're a business model."