repossessor

A repossessor is a person or firm contracted to recover collateral used to secure a loan when the borrower defaults on payments. Commonly associated with auto loans, repossession can also involve boats, RVs, machinery, or other secured property. The role centers on reclaiming the pledged asset so the lender can mitigate losses.

Repossession is typically governed by the contract between borrower and lender and by applicable laws in the jurisdiction. Repossession agencies may be employees of the lender or independent contractors, and they are often required to hold licenses, bonds, and insurance. They generally operate by locating and retrieving the collateral, taking reasonable care to avoid damage and to comply with applicable legal constraints. In many places, methods that amount to entering a home or using force can constitute unlawful breach of peace, and improperly conducted repossessions can expose the agency to liability.

Process and procedures vary by jurisdiction and contract, but usually involve notification requirements, if mandated, and a legal ability to seize the collateral after default. Repossession may occur at the borrower's residence, workplace, or other locations where the collateral is kept, subject to legal limits. After possession, the item is typically stored by the lender or a custodian and later sold at auction or through private sale to recover the loan balance and costs. Any surplus from the sale is returned to the borrower, while a deficiency may be pursued by the lender where permitted by law.

Regulatory and ethical considerations include licensing, bonding, and training, as well as adherence to privacy, safety, and anti-harassment rules. Critics highlight risks to safety and consumer rights, leading to industry guidelines and protections aimed at reducing misuse.