Mass. Gen. Laws » Part III Title IV Chapter 255B
Massachusetts General Laws

Mass. Gen. Laws ch. 255B, § 20B (2026)

Repossession of collateral on default; hearing; redemption; disposition; deficiency; insurance proceeds; determination of value

✓ current as of July 2026
Find cases: SyfertCases citing this section MAmalegislature.gov (official) JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

Section 20B. (a) Subject to the provisions of this section and section 20A a secured creditor under a consumer credit transaction may take possession of collateral. In taking possession the secured creditor under a consumer credit transaction may proceed without a prior hearing only if the default is material and consists of the debtors failure to make one or more payments as required by the agreement or the occurrence of an event which substantially impairs the value of the collateral and only if possession can be obtained without use of force, without breach of peace and unless the debtor consents to an entry, at the time of such entry, without entry on property owned by or rented to the debtor.

(b) Except as provided in subsection (a) a creditor under a consumer credit transaction may proceed against collateral only after a prior hearing. In any proceeding where possession of the collateral is part of the relief sought by a holder no court shall allow a secured creditor to take possession of collateral until the right of the creditor to take possession has been determined at a hearing at which the buyer has an opportunity to be heard having been notified in writing of said hearing at least seven days in advance thereof.

(c) The buyer under a secured consumer credit transaction may redeem the collateral from the holder at any time within twenty days of the creditor's taking possession of the collateral, or thereafter until the creditor has either disposed of the collateral, entered into a contract for its disposition, or gained the right to retain the collateral in satisfaction of the buyer's obligation.

(d) The creditor may after gaining possession sell or otherwise dispose of the collateral. Unless displaced by the provisions of this section and section twenty A the rights and obligations of the parties, including the redemption and disposition of the collateral shall be governed by the provisions of Part 6 of Article 9 of chapter 106. Notwithstanding the provisions in Part 6 of Article 9 of chapter 106, if, in connection with a consumer credit transaction which involves an unpaid balance of two thousand dollars or less and which is at the time of default secured by a non-possessory security interest in consumer goods, the creditor takes possession of or accepts surrender of the collateral, the debtor shall not be liable for any deficiency. If the agreement between the creditor and debtor provides that the debtor is to obtain insurance protecting the collateral against fire, theft, collision or other hazards and naming the creditor as loss payee and if, prior to the repossession or surrender of the collateral, loss or damage occurs which would give rise to insurance proceeds under the terms of the policy in force, then nothing in this section shall be deemed to limit the creditor's rights to so much of the insurance proceeds as does not exceed the fair market value of the collateral existing just prior to the loss or damage and, if insurance as required by the agreement is not in force at the time of the loss or damage, nothing in this section shall be deemed to limit the creditor's rights in proceeding against any third party who is responsible for the loss or damage in the name of the debtor or otherwise. For the purposes of this section the unpaid balance of a consumer credit transaction shall be that amount which the debtor would have been required to pay upon prepayment.

(e) (1) If the unpaid balance of the consumer credit transaction at the time of default was two thousand dollars or more the creditor shall be entitled to recover from the debtor the deficiency, if any, resulting from deducting the fair market value of the collateral from the unpaid balance due and shall also be entitled to any reasonable repossession and storage costs, provided he has complied with all provisions of this section.

(2) In a proceeding for a deficiency the fair market value of the collateral shall be a question for the court to determine. Periodically published trade estimates of the retail value of goods shall, to the extent they are recognized in the particular trade or business, be presumed to be the fair market value of the collateral.

Notes of Decisions
Cited in 19 cases (5 in the last 5 years), 1976–2025 · leading case: Williams v. Am. Honda Fin. Corp., 98 N.E.3d 169 (Mass. 2018).
Sort: Relevance Newest Treatment
Williams v. Am. Honda Fin. Corp., 98 N.E.3d 169 (Mass. 2018). · cites it 22× “**656 The primary issue presented in this case is how to establish the fair market value of a repossessed automobile pursuant to G. L. c. 255B, § 20B. Under § 20B, a creditor who repossesses and sells a vehicle is entitled to recover from the debtor the deficiency, if any, that…”
Sovereign Bank v. Sturgis, 863 F. Supp. 2d 75 (D. Mass. 2012). “Similarly, the Massachusetts Appellate Division has held that compliance with the requirement that a plaintiff send notice pursuant to G.L. c. 255B, § 20B, before commencing a suit under that chapter must be included as an element in the plaintiffs complaint.”
Williams v. Am. Honda Fin., 907 F.3d 83 (1st Cir. 2018). “Acknowledging that a resolution of Williams's claims would require this court to reconcile Massachusetts's Motor Vehicle Retail Installment Sales Act ("MVRISA"), Mass. Gen. Laws ch. 255B, § 20B, with provisions of the Massachusetts UCC, we certified the following three questions…”
In Re Pluta, 200 B.R. 740 (Bankr. D. Mass. 1996). “The Turnover Motion Mass.Gen.L. ch. 255B, § 20B(c) provides as follows: (c) The buyer under a secured consumer credit transaction may redeem the collateral from the holder at any time within twenty days of the creditor’s taking possession of the collateral, or thereafter until…”
Williams v. Am. Honda Fin. Corp., 858 F.3d 700 (1st Cir. 2017). “To support this claim, she points to Massachusetts’s Motor Vehicle Retail Installment Sales Act (“MVRISA”), Mass. Gen. Laws ch. 255B, § 20B, which the parties agree provides that the credit due a consumer debtor upon sale of a repossessed motor vehicle is the “fair market value”…”
Broome v. Rodman Ford Sales, Inc., 450 N.E.2d 633 (Mass. App. Ct. 1983). “We conclude that under G. L. c. 255B, § 20B(e), and G. L. c. 106, § 9-504(2), the surplus due should be computed on the basis of the fair market value (at the time of the sale of the collateral) of any trade-in vehicle together with cash received by Rodman, rather than the sale…”
U.S. Trust Co. v. Carreiro, 2000 Mass. App. Div. 159 (Mass. Dist. Ct., App. Div. 2000). · cites it 3× “Specifically, the defendant contends that G.Lc. 255B, Section 20B precludes a creditor from recovering on a deficiency unless it can be established that the unpaid balance of the consumer credit transaction at the time of default was two thousand dollars or more.”
In re Henderson, 492 B.R. 537 (Bankr. D. Nev. 2013). “9-A, § 5-109 (2012); Mass. Gen. Laws ch. 255B, § 20B(a) (2012); Mo.”
New England Merchants Nat'l Bank v. McPherson, 58 Mass. App. Dec. 106 (Mass. Dist. Ct., App. Div. 1976). “The evidence does not warrant a finding that the defendant held the collateral for fifteen days after notice was delivered to the defendant as required by G.L.c. 255B, §20B. Court: Allowed. "6. The evidence warrants a finding that the defendant paid more than 60% of the purchase…”
Commonwealth v. Credit Acceptance Corp. (Mass. Super. Ct. 2021). · cites it 6× “In addition to its subject matter jurisdiction challenge about standing, CAC also argues that count four should be dismissed under Rule 12(b)(6) for failure to state any claim upon which relief may be grant.”
Dellorusso v. PNC Bank, N.A. (Mass. App. Ct. 2020). · cites it 5× “106, § 9-609; G. L. c. 255B, § 20B (a). Both also provide that a creditor may sell the car so long as the creditor gives timely notice to the debtor of when and how the sale will take place and that advises the creditor of certain rights.”
Piazza v. Santander Consum. USA Inc. (D. Mass. 2020). · cites it 4× “If the net proceeds at the sale, after expenses, does not equal your unpaid balance, and if the total unpaid balance exceeds $2,000, you may owe us the difference, subject to applicable law (including Mass. Gen. Laws. ch. 255B § 20B). [Id. at Ex.”
Show all 19 citing cases →
— Mass. Gen. Laws ch. 255B, § 20B(a) — 4 cases
In re Henderson, 492 B.R. 537 (Bankr. D. Nev. 2013). “9-A, § 5-109 (2012); Mass. Gen. Laws ch. 255B, § 20B(a) (2012); Mo.”
Neathery v. Lucky 13 Recovery Inc. (D. Mass. 2023).
Shue v. JMAC Distrib., LLC (D. Mass. 2024).
Folan (D. Mass. 2025).
— Mass. Gen. Laws ch. 255B, § 20B(c) — 1 case
In Re Pluta, 200 B.R. 740 (Bankr. D. Mass. 1996). “The Turnover Motion Mass.Gen.L. ch. 255B, § 20B(c) provides as follows: (c) The buyer under a secured consumer credit transaction may redeem the collateral from the holder at any time within twenty days of the creditor’s taking possession of the collateral, or thereafter until…”
— Mass. Gen. Laws ch. 255B, § 20B(d) — 3 cases
Piazza v. Santander Consum. USA Inc. (D. Mass. 2020). “If the net proceeds at the sale, after expenses, does not equal your unpaid balance, and if the total unpaid balance exceeds $2,000, you may owe us the difference, subject to applicable law (including Mass. Gen. Laws. ch. 255B § 20B). [Id. at Ex.”
Commonwealth v. Credit Acceptance Corp. (Mass. Super. Ct. 2021). “In addition to its subject matter jurisdiction challenge about standing, CAC also argues that count four should be dismissed under Rule 12(b)(6) for failure to state any claim upon which relief may be grant.”
U.S. Trust Co. v. Melchiono, 32 U.C.C. Rep. Serv. 2d (West) 1013 (Mass. Dist. Ct., App. Div. 1997).
— Mass. Gen. Laws ch. 255B, § 20B(e) — 1 case
Broome v. Rodman Ford Sales, Inc., 450 N.E.2d 633 (Mass. App. Ct. 1983). “We conclude that under G. L. c. 255B, § 20B(e), and G. L. c. 106, § 9-504(2), the surplus due should be computed on the basis of the fair market value (at the time of the sale of the collateral) of any trade-in vehicle together with cash received by Rodman, rather than the sale…”
— Mass. Gen. Laws ch. 255B, § 20B(e)(1) — 1 case
Piazza v. Santander Consum. USA Inc. (D. Mass. 2020). “If the net proceeds at the sale, after expenses, does not equal your unpaid balance, and if the total unpaid balance exceeds $2,000, you may owe us the difference, subject to applicable law (including Mass. Gen. Laws. ch. 255B § 20B). [Id. at Ex.”
— Mass. Gen. Laws ch. 255B, § 20B(e)(l) — 1 case
Jaguar Credit Corp. v. Colleran, 4 Mass. L. Rptr. 489 (Mass. Super. Ct. 1995).
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.