Page 145 - CARS Standard Program

5. Recovery Agency Information Form (Form J)
Although designed primarily for lenders, this form can be an important tool for recovery agencies that do a large volume of “forwarding” or reassignments.
Just as lenders subject themselves to much more exposure when they do not use trained professionals to recover defaulted collateral, so too does the recovery agency that reassigns accounts to unqualified, under-insured agents. This form, when properly completed and verified, will ensure competency of the recovery agency where the account is being reassigned.
6. Incident Report Form (Form K)
Any time an incident occurs involving the Recovery Agent in the field an Incident Report must be filed. Incidents include those listed in this manual. If you are unsure whether or not to report an incident, report it, especially if the incident involves a debtor. An angry or belligerent debtor may very well attempt to exaggerate the situation for financial gain. Detailed and immediate completion of the Incident Report form allows management to assist in resolving such issues.
7. Contract for Storage and/or Other Services (Form O)
This form creates a contractual relationship between the collateral recovery agency and the debtor so as not to violate third-party requirements of the Fair Debt Collection Practices Act (FDCPA). According to the act, collecting monies from a debtor (for storage, personal property, etc.) without a contractual relationship establishes the collateral recovery agency as a third-party debt collector for the creditor which would require these monies to be sent to the creditor. The recovery agency would then be required to invoice the creditor. The Contract for Storage and/or Other Services form eliminates that requirement.
8. Inter-Agency Hold Harmless Agreement (Form P)
This form is to be used by a recovery agency that is reassigning a repossession account to another recovery agency. Some states require this document in order to release the reassigning recovery agency from litigation in the event of a lawsuit against the recovery agency that accepted the reassignment.
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