A repo agent works for a company that needs to reclaim assets that have been entrusted to them. The repo agent’s job is to take items that a buyer can’t pay for and return them to the company, which can then sell them. A repo agent, also known as a repossession agent, can seize cars, furniture, or any other item on which a person has taken out a secured loan.
The majority of people have access to two types of credit: secured debt and unsecured debt. Unsecured debt, such as credit cards, is debt that has no collateral and that the bank may not be able to seize if a person fails to pay his bills. Secured debt, on the other hand, is credit given in exchange for the purchase of a repossessed asset. A car loan and a mortgage loan are both secured debts, with the vehicle and the house as collateral. When a person buys furniture or electronics on credit, the assets may be used as collateral for the debt.
When a person fails to pay a secured debt, the item that guarantees the debt is seized. To put it another way, if someone takes out a car loan, the car serves as collateral. If the person fails to make car payments, the bank or dealership has the right to repossess the vehicle. This indicates that it is capable of returning the vehicle. The repo agent’s job is to go to the borrower’s house, collect the car, and deliver it to the company.
The company attempting to collect the debt usually hires the repo agent. A full-time repossession agent may be employed some businesses, such as a car dealership. Others will retain the services of consultants.
Once hired, the repo agent must ensure that he follows all federal, state, and local laws. This means he’ll have to follow the rules of what he’s legally allowed to do when he takes someone’s property. The person requesting the repossession may be required to produce a subpoena, warrant, court order, or proof of ownership, but the exact rules vary state.
Finding the person who has the item repossessed and taking the item is one of the most difficult tasks for the agent. Many people are constantly on the move and can be difficult to locate. People who are having their property repossessed may try to buy time telling the repossessing agent about their financial woes; however, the agent usually just takes the item and has no authority to stop the repossession or assist the borrower.