WARNING!
LENDER LIABILITY HERE ARE THE FACTS CONCERNING REPOSSESSIONS
FACT: THERE ARE ONLY FIVE (5) INSURANCE COMPANIES OPERATING IN THE UNITED STATES THAT INSURE REPOSSESSION COMPANIES. REPOSSESSION INSURANCE IS VERY COSTLY AND NOT EASILY OBTAINED. THERE ARE COUNTLESS REPOSSESSION COMPANIES THROUGHOUT THE UNITED STATES THAT CLAIM TO BE "CERTIFIED" AND "FULLY INSURED."
FACT: THERE ARE LESS THAN 1500 REPOSSESSION COMPANIES PROPERLY INSURED IN THE UNITED STATES. THE MAJORITY OF THE COMPANIES THAT CLAIM TO BE "FULLY INSURED" HAVE NOTHING MORE THAN A GARAGE KEEPERS LIABILITY AND TOWING COVERAGE. THIS COVERAGE DOES NOT EXTEND TO THE LENDER. TOWING A VEHICLE ON THE BACK OF A TOW TRUCK IS VASTLY DIFFERENT THAN A REPOSSESSION. WHEN YOU OWN A VEHICLE AND CALL SOMEONE TO TOW IT FOR YOU - MOST PEOPLE WOULD EXPECT THAT THE COMPANY TOWING THE VEHICLE BE PROPERLY INSURED.
FACT: WHEN YOU ISSUE A REPOSSESSION ASSIGNMENT - YOU THE LENDER ARE LIABLE FOR EVERYTHING THAT HAPPENS FROM THAT POINT ON BY RETAINING THE REPOSSESSION COMPANY TO ACT AS YOUR AGENT, INCLUDING THE FOLLOWING PERILS: BREACH OF THE PEACE, WRONGFUL REPOSSESSIONS, PROPERTY DAMAGE, LOST OR STOLEN PERSONAL PROPERTY, BODILY INJURY, CONVERSION, AS WELL AS NUMEROUS OTHER TORTS. PLEASE DON'T THINK FOR A SECOND THAT A COMPANY WITH GARAGE KEEPERS LIABILITY AND/ OR SIMPLE TOWING INSURANCE IS PROTECTING YOU THE LENDER FROM ALL THE POSSIBLE AREAS OF LIABILITY. THE WHOLE ASPECT OF REPOSSESSING IS EMOTIONALLY CHARGED TO BEGIN WITH AND THERE HAVE BEEN COUNTLESS COURT FINDINGS AS WELL AS JUDGMENTS AGAINST THE LENDERS AND THEIR AGENTS AS A RESULT OF A REPOSSESSION THAT WENT WRONG. THESE FINDINGS RANGE FROM A FEW HUNDRED DOLLARS INTO THE MILLIONS.
FACT: THE LENDER WHO CONTRACTS THE REPOSSESSION AGENT PAYS DEARLY FOR THE AGENTS MISTAKES IF THE AGENT DOES NOT HAVE THE PROPER REPOSSESSION INSURANCE. SO UNLESS YOU ARE A RIVERBOAT GAMBLER, IT IS ABSOLUTELY IMPERATIVE THAT YOU RETAIN A PROFESSIONAL, PROPERLY INSURED AND CERTIFIED REPOSSESSION AGENCY.
AS A LENDER HOW CAN YOU PROTECT YOURSELF AND VERIFY THAT THE AGENT YOU RETAIN IS CERTIFIED AND PROPERLY INSURED???
THE WHOLE REPOSSESSION PROCESS FROM THE ISSUANCE OF THE ASSIGNMENT THRU THE LIQUIDATION OF THE COLLATERAL IS LIKE TIPTOEING THROUGH A MINE FIELD AND IS EMOTIONALLY CHARGED. THE NUMEROUS AND RECENT LAWSUITS AND HUGE JUDGMENTS AGAINST LENDERS HAVE REALLY GOTTEN THE ATTENTION OF THE LEGAL PROFESSION AND HAS PUT REPOSSESSIONS IN THE SPOTLIGHT.
FACT: THERE ARE ONLY FIVE (5) INSURANCE COMPANIES OPERATING IN THE UNITED STATES THAT INSURE REPOSSESSION COMPANIES. REPOSSESSION INSURANCE IS VERY COSTLY AND NOT EASILY OBTAINED. THERE ARE COUNTLESS REPOSSESSION COMPANIES THROUGHOUT THE UNITED STATES THAT CLAIM TO BE "CERTIFIED" AND "FULLY INSURED."
FACT: THERE ARE LESS THAN 1500 REPOSSESSION COMPANIES PROPERLY INSURED IN THE UNITED STATES. THE MAJORITY OF THE COMPANIES THAT CLAIM TO BE "FULLY INSURED" HAVE NOTHING MORE THAN A GARAGE KEEPERS LIABILITY AND TOWING COVERAGE. THIS COVERAGE DOES NOT EXTEND TO THE LENDER. TOWING A VEHICLE ON THE BACK OF A TOW TRUCK IS VASTLY DIFFERENT THAN A REPOSSESSION. WHEN YOU OWN A VEHICLE AND CALL SOMEONE TO TOW IT FOR YOU - MOST PEOPLE WOULD EXPECT THAT THE COMPANY TOWING THE VEHICLE BE PROPERLY INSURED.
FACT: WHEN YOU ISSUE A REPOSSESSION ASSIGNMENT - YOU THE LENDER ARE LIABLE FOR EVERYTHING THAT HAPPENS FROM THAT POINT ON BY RETAINING THE REPOSSESSION COMPANY TO ACT AS YOUR AGENT, INCLUDING THE FOLLOWING PERILS: BREACH OF THE PEACE, WRONGFUL REPOSSESSIONS, PROPERTY DAMAGE, LOST OR STOLEN PERSONAL PROPERTY, BODILY INJURY, CONVERSION, AS WELL AS NUMEROUS OTHER TORTS. PLEASE DON'T THINK FOR A SECOND THAT A COMPANY WITH GARAGE KEEPERS LIABILITY AND/ OR SIMPLE TOWING INSURANCE IS PROTECTING YOU THE LENDER FROM ALL THE POSSIBLE AREAS OF LIABILITY. THE WHOLE ASPECT OF REPOSSESSING IS EMOTIONALLY CHARGED TO BEGIN WITH AND THERE HAVE BEEN COUNTLESS COURT FINDINGS AS WELL AS JUDGMENTS AGAINST THE LENDERS AND THEIR AGENTS AS A RESULT OF A REPOSSESSION THAT WENT WRONG. THESE FINDINGS RANGE FROM A FEW HUNDRED DOLLARS INTO THE MILLIONS.
FACT: THE LENDER WHO CONTRACTS THE REPOSSESSION AGENT PAYS DEARLY FOR THE AGENTS MISTAKES IF THE AGENT DOES NOT HAVE THE PROPER REPOSSESSION INSURANCE. SO UNLESS YOU ARE A RIVERBOAT GAMBLER, IT IS ABSOLUTELY IMPERATIVE THAT YOU RETAIN A PROFESSIONAL, PROPERLY INSURED AND CERTIFIED REPOSSESSION AGENCY.
AS A LENDER HOW CAN YOU PROTECT YOURSELF AND VERIFY THAT THE AGENT YOU RETAIN IS CERTIFIED AND PROPERLY INSURED???
- EVERY INSURANCE COMPANY ISSUES THE LOSS PAYEE A CERTIFICATE OF LIABILITY. THAT CERTIFICATE MUST CLEARLY STATE "REPOSSESSION" AND LIST YOU - THE LENDER AS THE CERTIFICATE HOLDER. THIS IS IMPERATIVE.
- REQUEST A COPY OF THE REPOSSESSION AGENCIES P.U.C.O. TAX RECEIPT. ALL TOW TRUCKS (REPOSSESSION OR OTHERWISE) ARE REQUIRED TO HAVE THIS. FAILURE TO HAVE P.U.C.O. AUTHORIZATION SUBJECTS THE TOW TRUCK AND ANY VEHICLE ON THE HOOK OR BED TO BE IMPOUNDED BY THE P.U.C.O. ENFORCEMENT.
- INSPECT THE REPOSSESSION AGENTS PHYSICAL FACILITY. AND ASK YOURSELF THE FOLLOWING QUESTIONS: IS THE HOLDING LOT SECURE? ARE ALL VEHICLES ON SITE? HOW IS THE PERSONAL PROPERTY HANDLED? DOES THE AGENT KNOW THE LAWS PERTAINING TO PROPER HANDLING AND PROCEDURES OF PERSONAL PROPERTY?
THE WHOLE REPOSSESSION PROCESS FROM THE ISSUANCE OF THE ASSIGNMENT THRU THE LIQUIDATION OF THE COLLATERAL IS LIKE TIPTOEING THROUGH A MINE FIELD AND IS EMOTIONALLY CHARGED. THE NUMEROUS AND RECENT LAWSUITS AND HUGE JUDGMENTS AGAINST LENDERS HAVE REALLY GOTTEN THE ATTENTION OF THE LEGAL PROFESSION AND HAS PUT REPOSSESSIONS IN THE SPOTLIGHT.
