Page 81 - CARS Standard Program

1. Involuntary Recovery
2. Voluntary Recovery
3. Lease Returns
4. Impounds
5. Field Call Delinquency Interview Assignments
6. Field Call Residence or POE Verification
In assigning requests for repossessions, the creditor can never send too much information on the debtor. In the real world, with the majority of assignments there is too little information provided by the creditor. The Recovery Agency manager should discuss this very important step in the repossession process with the creditor’s collection department supervisor and convince him/her of the importance of certain information. It is important that the collection department supervisor understand that the more information the recovery agency is provided, the better the prospects for a speedy recovery of the collateral.
If the assignment location is a considerable distance from the Recovery Agency address, office staff should request the creditor to allow the Recovery Agent to make contact with the debtor on the initial run if the Recovery Agent is not able to recover the collateral otherwise. The following documents should be made available by the creditor on each repossession assignment.
1. Hold Harmless Agreement: This instrument provides basic language authorizing repossession of the described collateral and also under what conditions the creditor is obligated to defend the actions of the Recovery Agency and the Recovery Agent in the event of litigation. Some creditors will issue one “blanket” agreement for all assignments the Recovery Agency will work for that creditor. Most creditors, however, will issue the agreement on each assignment. If a “blanket” agreement is issued, it is very important that the agreement be placed in that creditor’s permanent file for future reference. A generic Hold Harmless Agreement can be found in Forms (Section 13).
2. Copy of Contract: Generally, the Security Agreement, rather than the certificate of title is accepted by courts as proof of ownership of a motor vehicle. During your career as a Recovery Agent, you will most likely confront a situation where the creditor has erroneously sent the certificate of title to a debtor before the contract has been paid in full. When the Recovery Agent attempts to take possession of the collateral, the debtor gleefully displays the title and claims ownership. The Recovery Agent, having a copy of the Security Agreement in his possession, will be more likely to persuade the debtor to allow the repossession.
3. Credit Application: If you have ever received an assignment for repossession where the creditor has given the debtor’s residence as a post office box, you can appreciate the information contained in the credit application. And, in many instances, the debtor’s physical address and place of employment are no longer correct. The credit application can be a wealth of information to assist the office staff and the Recovery Agent in obtaining new information to locate the debtor, such as friends, relatives,