All About Repossessions


Looking for some facts about repossession ? Read on…


When a lender – usually a bank or financial institution – lends money to a person or entity (the borrower) to purchase an asset (such as a boat, car, RV, truck, etc), the lender retains the right to take possession of the asset if the terms of the loan are not met by the borrower, such as non payment or insufficient insurance coverage on the collateral.  This is called a “Repossession”, and there are different ways the lender can repossess the asset. 

Voluntary Repossession

Voluntary Repossessions (aka Self Help Repossessions) are done without involvement or assistance of law enforcement or a court order.  The borrower with possession of the asset voluntarily delivers the asses to a place designated by the lender.  If the lender does not have a suitable location in the area of the asset, then the lender might instruct the borrower to deliver the asset to a place authorized to handle the asset for the lender.  

Involuntary Repossession?

Involuntary repossession happens when a certified company/person (agent) is hired by the lender to locate and legally reclaim possession of the asset.  This company/person is not an agent of the police or the courts, and must act in a peaceful manner during the repossession.  If the peace is breached, the agent is required to cease and leave the premises.  Also, the agent is a licensed professional and must carry liability insurance to cover repossessions.

Some towing companies do repos, but a wrecker license in itself is not a repossession license or vice versa. There is separate and distinct licensing for each type of work..

Writ of Replevin

A Writ of Replevin is a court ordered repossession, whereby the court orders law enforcement personnel to locate and take possession of the asset(s).

Madrid Towing can help with Voluntary Repossession

If a car is dropped off at Madrid Towing, we will notify the lender via certified mail, giving the lender ample time to come and reclaim their collateral. 

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