Turbulent Economy Spurs Growth in Repossession Services

imgres-5An unfortunate side effect of recent economic downturns is a significant increase in loan defaults, especially in the new and used car industry. These defaults have prompted a matching rise in demand for the services of experienced, professional vehicle recovery companies. While repossession is never the desired outcome of an auto loan, it is sometimes necessary in order to protect the interests of the lender and to prevent damage or loss to the vehicle used as collateral. Recovery companies work for lending institutions and other financial concerns to locate and bring back these vehicles safely and in a timely fashion, allowing the lender to protect the value of their property.

The financial costs of default
Lenders must bear not only the cost of defaulted loans, but the expenses of recovering their collateral when borrowers fail to make the scheduled payments on their car or truck. Uninsured vehicles present an even greater risk to the lien holder, since these vehicles may represent a total loss in the event of an accident and may even create additional financial liability for the lending institution if it is held responsible for any damages caused by the vehicle. The costs to the borrower are also significant and typically include a damaging entry on the borrower’s credit report, the loss of the vehicle and continued liability for any outstanding amounts due on the loan.

The recovery process
Once the lender contacts the repossession company, the process of recovering the vehicle is set in motion. The lender typically provides name and address information for the borrower along with detailed information on the vehicle to be recovered. In some cases the recovery company can simply send an agent to pick up the vehicle and return it to the lender. If the borrower has moved or has chosen to conceal the vehicle, however, it may be necessary to perform skip tracing to determine the current location of the car or truck to be recovered. These investigative techniques often involve calls to neighbors, employers and other individuals who may have knowledge of the whereabouts of the borrower or the vehicle. Once the vehicle or the owner has been located, the recovery company can pick up the vehicle for return to the lender. Most recovery companies employ field agents who are trained in conflict resolution and who are physically able to take care of themselves if the situation should turn violent due to a negative reaction from the borrower during the repossession process.

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323.913.9600


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909.874.1400


Misti - Qualified Manager
John - Quality Assurance Supervisor

Areas We Service

Los Angeles Auto Wholesaler and Recovery Service, Inc. is dedicated to revolutionizing the repossession industry from the initial contact and throughout the entire process. We take much pride in recovering your collateral safely, legally, and effectively.

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