Repo agents recover secured assets for companies when buyers cannot make payments. They repossess cars, furniture, or any other item for which a person takes out a secured loan. The agent must comply with all federal and local laws and may need a subpoena, warrant, court order, or proof of ownership. The most difficult task is finding the person who has the recovered item.
A repo agent works for a company that needs to recover secured assets. The repo agent’s job is to take items for which the buyer cannot make payments and return them to the company that can sell them. A repo agent, or repossession agent, can repossess cars, furniture, or any other item for which a person takes out a secured loan.
There are two types of credit available to most people: secured debt and unsecured debt. Unsecured debt is debt, like credit cards, because there are no collateral and the bank doesn’t necessarily have anything it can take if a person doesn’t pay their bills. Collateralized debt, on the other hand, is debt borrowed for the purchase of an asset that can be salvaged. A car loan and a mortgage loan are secured debt, secured respectively by the vehicle and the house. When a person buys furniture or electronics from a store on credit, these assets can also act as collateral for the debt.
If a person defaults on a secured debt, the item securing the debt is seized. In other words, if a person takes out a car loan, the car is the collateral. If the person stops making the car payment, the bank or dealership can recover. That means you can take the car back. It is the repo agent’s job to go to the borrower’s home, collect the car and deliver it to the company.
The repo agent is usually hired by the company trying to collect the debt. Some companies may have a full-time recovery agent on staff, such as an automobile company. Others will hire consultants.
Once hired, the repo agent generally must ensure that he complies with all federal and local laws. This means that he will need to act within the guidelines of what he is legally allowed to do in taking someone else’s property. A subpoena, warrant, court order, or proof of ownership may be required from the person filing for repossession, but the exact rules vary by state.
One of the most difficult tasks of the agent’s job is to find the person who has the recovered item and take it. Many people move around a lot and can be hard to find. People who have recovered items can also try to buy time by telling stories of financial distress to the recovery agent; generally, the agent just takes the item and does not have the authority to stop the repossession or help the borrower.
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