Page 103 - Microsoft Word - NEW 2017 Standard Program.docx

This is why it is important that personal property be properly inventoried and that the
debtor be notified in a timely fashion of their right to redeem personal property. In
Nadalin v. Automobile Recovery Bureau, Inc., the court also recognized the right of
the collateral recovery agency to charge a reasonable fee for this process.

Condition Reports
Under the Uniform Commercial Code (UCC) creditors are highly regulated as to the time
period for sending certified notification to the debtor in order to assure the creditor of its
rights to collect any deficiency balance after the sale of the collateral. Failure to adhere to
these regulations may result in the failure to remarket the collateral in a timely manner
and result in the creditor (client) losing thousands of dollars. Since the Condition Report
initiates the lien holder’s deficiency process after recovery, the importance of
completing the Condition Report process cannot be overemphasized.

Upon completion, a Condition Report becomes a statement of fact and must be
completed as such. The report must provide an accurate description and condition of the
collateral and the Recovery Agent’s diligence in completing the report is necessary to
protect the Recovery Agent and the client from potential issues with the debtor (or the
courts). Without exception, Condition Reports must be completed within six (6) hours
after the collateral has been recovered. Failure to complete the report in a timely manner
may compromise a relationship with the client.

When completing the Condition Report, be sure to fill in each space provided. If the
question or space does not describe the condition accurately always write additional
comment specific to the condition of the collateral. If the space does not apply, write
“N/A – Not Applicable.” This will ensure that the entire condition report was reviewed
and not overlooked. The Recovery Agent should note whether the collateral was locked
and/or if any of the windows were down at the time of recovery. This will be an
important factor in the event of a debtor’s claims of missing personal property.

In addition to completing the condition report it is recommended that no less than six (6)
photos be taken of the vehicle to protect the recovery agency in the event there are
allegations of damage allegation. Upon completion, the Condition Report shall
immediately be provided to office staff for final processing.

Field Call Assignments (Non-Repossession)
Field assignments are one avenue creditor’s use in an effort to verify the condition of
their collateral and to prompt the debtor to contact them to try to resolve a delinquent
account in lieu of repossession. Field assignments should be serviced during normal
working hours (8 a.m. to 9 p.m.) except when the lien holder’s instructions dictate
otherwise.

Field assignments may also be used by the lien holder for other purposes. The account
may have been paid on time for a number of months and then no payment is received and
the lien holder is unable to contact the debtor. In the event of a divorce, and where both
husband and wife signed the Security Agreement, the lien holder may feel the need to