Page 110 - CARS Standard Program

Should the debtor make such a claim, provide them with a copy of the Affidavit of Missing Personal Property form, which can be found in Forms, Section 13. Once the debtor has reviewed this form you can be virtually assured they will not return unless their claim was valid.
Redemption of Recovered Collateral
The basic procedures for the release of personal property should be followed when the debtor is redeeming the recovered collateral, with the following exceptions:
1. Only the debtor should be allowed to redeem the collateral unless there is express, written consent from the lien holder to the contrary. In these situations, be certain the debtor has also provided you with written, notarized permission.
2. Make a photocopy of the driver’s license of the person redeeming the collateral and be certain the person redeeming the collateral has signed the Vehicle Release Debtor form, which can be found in Forms, Section 13. Under no circumstances should the collateral be released from the care, custody and control of the recovery agency until this form is signed.
Sale of Recovered Collateral
Although most creditors dispose of recovered collateral at licensed and approved auctions, there will be occasions when the creditor will request this service of the Recovery Agency either by advertising for bids or through online auctions. If the sale is by online auction, you will receive authority and procedural instructions from the lien holder.
Upon written authority from the lien holder to sell recovered collateral, the Recovery Agency should obtain three (3) bids on the recovery agency’s Bid Form. A generic Bid Form can be found in Forms, Section 13. It should have language limiting the number of days the bid will be honored, such as ten (10) days. This will eliminate potential problems with the lien holder where the Recovery Agency has obtained bids and the lien holder makes the decision to accept the high bid three months after submission.
Should the lien holder accept the high bid, the acceptance must be in writing from the lien holder. The Recovery Agency should then request a “negotiable” title, collect the funds from the sale and place these funds in the Recovery Agency’s Trust Account. These funds should never be co-mingled with the Recovery Agency’s regular business bank account. Upon receiving negotiable title, the Recovery Agency will release the collateral to the buyer, deduct its charges from the proceeds and immediately remit the balance to the lien holder.
Occasionally, the lien holder may request that sale funds be remitted to them prior to sending negotiable title. This practice should be discouraged as the lien holder often does not file the proper documentation for negotiable title in a timely manner, to the detriment of the buyer and the Recovery Agency. Such a situation may cause ill will among all parties involved.
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