Page 90 - CARS Standard Program

First Run
The Recovery Agent should run the debtor’s residence within 24 hours of receiving the assignment. If the collateral is not observed and the POE is listed on the assignment, that location should be checked as well. Unless the assignment instructions permit the Recovery Agent to make contact with the debtor in the event the collateral is not observed, the Recovery Agent should make every effort not to reveal his presence since the debtor may attempt to hide the collateral.
On the initial run of the assignment, if the collateral is not recovered an Assignment Update and Status Report must be completed and sent by fax or e-mail to the client. You will find an Assignment Update and Status Report Form in Forms (Section 13) of this manual. The importance of status reports is second only to the actual recovery of the collateral. The two primary reasons for losing a client’s business are poor percentages in recovering collateral and failure to provide the client with timely status reports.
Second Run
If the collateral is not located and recovered on the first attempt, depending upon assignment instructions the Recovery Agent should attempt to contact the debtor on the second or third run.
If contact is made, the Recovery Agent should conduct himself in a professional manner and use his ID card and communication skills to secure possession of the collateral. Using good communication skills and ID card will, in virtually every personal contact, convince the debtor of the Recovery Agent’ authority to secure possession of the defaulted collateral. As previously mentioned, the Recovery Agent should never use the term “repossession.” Such term is negative in nature and gives the debtor the feeling that the transaction is final. Such a feeling of “finality” in losing “their car” can create resentment and may cause the debtor to refuse to give up the collateral. The Recovery Agent should use the phrase “secure possession”,impound, or“placingalegalhold” on the collateral. The Recovery Agent should further explain that, during the period of “impound” or “hold,” the debtor has the right to contact the creditor in an effort to redeem the collateral. Never put a debtor in a position that leaves him feeling “cornered” with no way out.
Example 1: The Recovery Agent confronts the debtor and advises, “Mr. Adams, I am here to repossess your 2005 Ford truck.” Such confrontation and lack of effective communication skills will usually be considered offensive to the debtor and many times will eliminate any chance of cooperation on the debtor’s part.
Example 2: The Recovery Agent confronts debtor and asks, “Good morning, are you Mr. Adams?” Be sure you are speaking to the debtor. Showing his ID card and using good communication skills the Recovery Agent advises, “My name is Don West and I have been authorized by (name of creditor) to take possession of the 2005 Ford truck due