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How to Be a Repossession Agent in Kentucky

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Repossession agents contract with consumer lenders to legally retrieve property on behalf of the lenders. When a consumer falls behind on installment payments, a lender will call a repossession agent to collect the collateral. Most people envision the "Repo man" towing away automobiles in the middle of the night, but airplanes, motor homes and luxury yachts are also subject to repossession. Kentucky is among a handful of states that do not require a license to work as a repossession agent.

Familiarize yourself with Kentucky’s laws regarding what constitutes a legal repossession. While the state does not require a license to operate as a repossession agent, it does have stringent laws as to what constitutes a legal repossession.

Obtain insurance and surety bonds to protect your personal and professional assets. Kentucky has no specific insurance requirements for repossession agents, but state-based insurance carriers suggests minimum coverage amounts for tow truck operators. Use the tow truck operator's requirements as a guideline when determining the amount of coverage you will need as a repossession agent in Kentucky.

Contact local automobile lots and offer your repossession services. Always leave your business card and contact information. Sites like Kentucky Web (see Resources) will return a listing of statewide dealers or log on to the Kentucky Automobile Dealers Association website.

Offer your services to an established provider of repossession services. Perhaps the best way to learn the repossession business is to gain practical experience working with a company as an employee or independent contractor. National Finance Adjusters offers an online database of member repossession companies located in Kentucky.

Tip

While there is no specific equipment needed to become a repossession agent, an agent with access to a flatbed tow truck is often more efficient.

Use customer relationship management services to market to and follow up with prospective customers.

Warning

Kentucky law recognizes a creditor’s right to repossess but specifically states that a creditor cannot “breach the peace” during repossession. Kentucky courts have clarified this to mean that a creditor cannot use force, threaten force or trespass on personal property during repossession.

Kentucky law further allows a debtor to redeem or claim the property any time prior to the property’s sale at auction provided that certain conditions are met.

About the Author

Gary Wright is a working attorney in the Cleveland Ohio area. He has written on a professional freelance basis since 2005 and has a passion for public records. Wright is a graduate of Cleveland State University and the Marshall College of Law.

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