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How to Become a Licensed and Bonded Repossession Agent

A repossession agent or "repo man" is simply an individual who retakes ownership of a vehicle or other piece of property due to lack of payment. They are usually hired by the bank or company to whom the purchaser owes money for the property. Because of the nature of their work, repossession agents are often unliked and heavily avoided. Although it is an unpleasant business it is also an essential one. In today’s harsh economy, repossession agents are in high demand. Not only is this profession "recession proof" it actually thrives in a failing economy. While others are out of work and finding it difficult to pay for their cars, boats, and other expensive toys, competent, qualified repossession agents have plenty of work to keep themselves happily employed.

Obtain a CDL license. In some states, you may need a special endorsement to drive a tow truck. Contact your local DMV or Finance Administration Office for more information.

Determine if you need a special repossession agent license. Each state has its own laws on the licensure of repossession agents. Therefore, you must contact the office of the Secretary of State to find out the specific licensing laws for your area.

Find an association for repossession agent professionals, such as American Recovery Association. There is a great deal of information that is beneficial for repossession agents. A professional organization can aid in the process of receiving and understanding the information. It also can serve as a networking outlet for communicating with other agents.

Get bonded and insured. You will have to contact an insurance company that is licensed to provide these services in your state.

Purchase or lease a tow truck. A majority of the work a repossession agent does is retake automobiles from owners who have fallen behind in their payments. Obviously, a repo man needs to have an easy and convenient way to take these vehicles. A tow truck is the best way to accomplish this task. There is virtually no way anyone can be an effective repossession agent without a tow truck.

Contact businesses that might be in need of repossession agents such as used car lots. The owners and managers will be more apt to use agents with whom they are familiar. The more a repossession agent is exposed to local businesses, the more likely it is that there will be an abundance of work that stems from those businesses.

Work as a contractor, if desired. Consider contacting a company that specializes in repossessions. Although it is possible to be a repossession agent on an independent contract basis it is easier to get started in the business when working though and already established company.


Casey Holley is a medical writer who began working in the health and fitness industries in 1995, while still in high school. She has worked as a nutrition consultant and has written numerous health and wellness articles for various online publications. She has also served in the Navy and is pursuing a Bachelor of Science in health administration from the University of Phoenix.