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THE RECOVERY PROCESS

Storage Facility Security
The storage of recovered collateral is a primary function of a Recovery Agency owner. It
is his/her responsibility to maintain a safe and secure storage facility for all recovered
collateral as long as that collateral remains in his/her care, custody and control, and to
make sure there is proper and sufficient insurance coverage in place.

Generally, an insurance carrier will require the storage facility to be secured by, at the
minimum, chain-link fencing, 6-feet high and topped with three strands of barbed wire,
and sufficient lighting. Upon request, your power company can install vapor lighting that
comes on automatically at dark. This type of lighting is usually not cost-prohibitive since
many power companies will install it at no initial charge and with only a small monthly
fee.

Although insurance carriers may not require it, research indicates that surveillance cameras
are one of the most effective additional security enhancements. Another effective
deterrent, and not as costly as cameras, is to place signs at several points along the security
fence showing an angry dog with bared teeth and displaying the notation, “Warning,
This Facility Protected By Guard Dog And Camera Surveillance.”

Never forget that your liability for the protection of recovered property does not
end until that collateral is released to another party as directed by the creditor.

Office Security
The office area should be equipped with a quality alarm system that includes monitoring.
Since break-ins and vandalism are going to occur when no one is at the office, at night or
on weekends a monitoring system is very important. This makes good sense even if it is
not required by the insurance carrier and will usually lower your insurance premium cost.

Many alarm companies offer a “panic button.” With a push of this button, the local
police station or the alarm company’s monitoring station is notified. It is recommended
that this feature be installed if available and affordable.

The common-sense approach to security is to assume that there WILL be an attempt to
break into your facility or an uncivil encounter with a disgruntled debtor. From this
perspective, you should implement whatever anti-theft and protective measures are
financially feasible.

A crucial aspect of security is that of addressing potential hostile situations at the office.
Such occasions are infrequent and usually the result of the debtor appearing to reclaim
personal property. This potential hostility can begin with the debtor’s telephone call to
obtain directions to your office.