If you’re considering of becoming a repo man or a repossession agent then it’s really important that you know some of the legal requirements first. You can really make very costly and dangerous mistakes if you don’t know what you’re doing… you can even find yourself in jail!
Let’s take a look at some of the state laws and the licensing requirements before becoming a repo man:
You Need a State License
Don’t worry because most of the states don’t regulate the car repo businesses. However, the state of California, Florida and Louisiana do. Even if your state doesn’t look after the repo business, chances are you’ll need to get a license to operate as a private investigator or a collection agency.
It’s advisable that you ask the Secretary of State in your state so you can have an idea of the laws on licensing a car repo business.
You Need a Decent Insurance and Bonding
Insurance and bonding protects your repo business in the event that a repossessed vehicle gets damaged or if you recover the wrong car! Most of the states will definitely ask you to get a decent insurance and bonding before you can even get a business license.
But remember that insurance companies also need to make some profits. If they think that you’re not serious or responsible to start and operate a repo business then they won’t give you an insurance.
That’s why it’s highly recommend that you invest in the best auto repossession training and tools so you can be perceived as a knowledgeable professional. Check out the National Association of Surety Bond Procedures (NASBP) to find an insurance agent for your car repo business.
You Need a Commercial Driver’s License (CDL)
To acquire a CDL, you’ll need to have a clean driving record for the last 2 years. Your record must not have any major traffic convictions or any license suspensions. You’ll also going to take an exam to get your commercial license. Call up your state’s Department of Motor Vehicles for more details on how to get your commercial driver’s license.
You Need to Notify the Police Before Repossessing a Car
Here are the 3 things you need to tell the police when you’re repossessing a car:
- Where you’re recovering the car
- What the car looks like and its plate number
- The date and time that the repossession will likely to happen
It’s a good idea to call up the police in the cities you intend to repo the car so you can have information on their requirements.
As you can see the key is to really get educated on the repossession laws of your respective state. Also research about the federal debt collection and private investigation laws. If you’re diligent in preparing you can feel a lot more confident that you and your car repo business are protected when you repossess cars.