If you’ve thought about becoming a repo man or repossession agent, it’s crucial you know your state’s repossession laws, first. Otherwise, you risk lawsuits that can make your businesses mistakes dangerous and costly. This could cost you your career – or even land you in jail!
Here are some of the state laws and licensing requirements you must know about…
First – You’ll Probably Need to Notify the Police Before You Repossess A Car
Since you’re legally stealing a car in the dark of night, you may need to tell the police:
- What date/time the repossession will likely take place
- What the car looks like and it’s license plate number
- Where the repossession will likely take place
It’s best to contact the police departments in the cities you intend to repossess cars in to determine their requirements (or preferences.)
A successful foundation for success would be to thoroughly educate yourself about your state’s repossession laws – as well as federal debt collection and private investigation laws. That way, you can feel confident you and your business are protected when you repossess cars.
Second -You May Need to Get a Commercial Driver’s License (CDL)
To get a CDL, you’ll need to have a clean driving record for the last two years (no major traffic convictions or license suspensions.) You’ll also need to take an exam to get your commercial license.
Contact your state’s Department of Motor Vehicles for more information on obtaining your CDL.
Third – You’ll Need Adequate Insurance and Bonding
Insurance and bonding is key to protecting your business, should a repossessed car get damaged – or if you repossess the wrong car! And, most states require you carry adequate insurance and bonding before you can get a business license.
Keep in mind, however, that insurance companies want to protect their interests, and they won’t insure a rookie repo agent unless they’re confident he or she is responsible.
That’s why it’s crucial to invest in the best repossession training and repossession tools, so you prove that you’re competent and professional.
Look up the National Association of Surety Bond Producers (NASBP) to find an agent to insure your repo business.
Fourth – Do You Need a State License to Become a Repo Man?
California, Louisiana, and Florida do require licenses, but most states don’t regulate repossession businesses .
Even if your state doesn’t regulate repo businesses, you’ll likely need to get a license to operate as a private investigator or collection agency.
The best way to know for sure is to contact your state’s Secretary of State (or similarly named) to determine your state’s repossession laws, which you can usually find online.
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