Some lenders have begun insisting their repossession service go to the debtor's home or work and demand up to date payments. There have been several law suits against lenders and repossession services that the courts have determined repossession service field calls are illegal. Courts have determined that repossession service field calls are a violation on the Fair Debt Collection practices act.

Some states require that debt collectors hold a separate license to collect debts on behalf of another company. Most repossession services are not licensed to collect debts, they are licensed to repossess collateral.

Most repossession services are against the practice of repossession service field calls because the debtor interprets the field call as it is time to hide the collateral. Additionally most repossession services feel that they are placing their repossession service agents in danger from this practice. Why warn the debtor that you are about to repossess the collateral? If the loan is that far in default and it is time to repossess the collateral, then repossess the collateral. Don't warn your debtor that you are planning to repossess it. Just do it!

What's your opinion?

Reader Comments:

RepoRob Says: Repossession service field calls are a waste of time and it only makes it harder to repossess the collateral once the lender assigns the repossession. The repossession service I work for stopped doing repossession service field calls years ago.