When a borrower is unable to pay off their debts their lender will send a repossession agent after them to collect their property. Oftentimes these items repossessed are cars. If you’re a tow truck driver doing repo work you likely had to jump through many hoops to obtain your license. Despite this, the job can be very rewarding.
If you’re looking to get started in the repossession business then here are the steps for obtaining your repo license.
How to Get a Repo License
The policies surrounding the acquisition of a repo license vary by state. Since each state has different policies, you must check your state’s Department of Licensing and Regulatory Affairs.
Nevertheless, the following steps are commonly shared among the majority of states. Here’s a guide to getting your repo license.
Have a High School Diploma or Equivalent
For starters, if you want to acquire a repo license you need to be at least 18 years old. Besides that, you need to have a GED or high school diploma, whichever your state requires. Lastly, you’ll need to pass a background check before you’re allowed to work with a repo agency.
Every state has different requirements when it comes to experience. Some only require six months while others may say a minimum of two years. Verify with your state how many hours of experience are necessary to obtain your license.
This will give you some time to get familiar with repo services and the skills needed to successfully perform the job. Also, during this time it’s recommended to get your CDL as you’ll need one to operate a tow truck.
Get Bond Insurance
Bond insurance will protect you if you’ve received payment from a client but you’re unable to meet your contractual obligations. Most states require this insurance but the amount of coverage needed will vary. Check with your state’s licensing agency for more information.
Pass Your Exam
Depending on your state you’ll need to pass an exam before you can apply for your repo license. Most states conduct this exam to make sure you possess the necessary skills and qualifications to perform your duties.
Generally, the exam covers industry-related topics like state repossession laws and safety training.
Once you pass your state exam you need to figure out what career path you wish to forego. You have two options – start your own repo business or work for someone else. When you apply for your state repo license you need to indicate which you’re applying for.
After you submit your application you can take your licensing exam. Make sure you pick a day and time that works for you. Once you pass the exam you’re all set!
So, if you want to obtain your repo license you need to first be 18 years or older, have your high school diploma or equivalent, and undergo a background check. If you meet the basic requirements you then need to gain experience, purchase bond insurance, and pass your exam. Before you start this journey, we recommend looking into your state’s repossession licensing requirements. As mentioned above, every state has unique criteria when it comes to obtaining your license. Therefore, you need to do some research on the area you plan to conduct business in.