I live in a neighboring state to you. I completed research for a client who wanted to start a repo business. I found that there are no licenses needed in my state unless you will accept money from a person in lieu of repoing their vehicle. If you will, then you have to be licensed by your state department of finance as a debt collector. Another thing I learned is that most auto dealerships now do their own repossessions. The banks and credit unions are the ones who hire repo agents and they set the requirements for insurance, bonds, the time you have to locate and repo a vehicle and other issues. To find the answers to my questions, I called my state department of finance, the local police department, state department of transportation, and an auto dealership. Through them, I was able to locate someone who is a repo agent and he was willing to answer my questions. One thing he told me is that it is an expensive business to get into and a dangerous one. You have to have at least one tow truck. You also have to have an impound lot to which you take vehicles because consumers have 10 business days in which to redeem the vehicle. You also have to have garage keepers insurance on the impound lot. My state doesn't license private investigators, but if Montana does, you would need a license because, according to my contact, in 20% or more of cases the vehicle to be repossessed is no longer in the possession of the person who purchased it. My contact had training as a skip tracer and used that to track down the vehicles. He often got called in when the police raided a house for drugs or another crime. He has been assaulted and threatened when he tried to repo a vehicle. With a bit of leg work you may be able to find people who will answer your questions for you.

Thanks for your helpful reply, BizResearcher! Mtman, did you find this helpful?

yes it was helpfull, but I think MT requires me of having a PI lisence and it is hard to get, meaning I got to travel four hours to take a test on most stuff that dont even need to know for repoing a car and have 2 years of PROVEN expereance, I have the expereance, but all the people I worked for are not wanting more compition so there not will to sign off on it! The part about the debt collectors licence, I dont think I would need case I wont be out collecting money because then I dont get pjayed as much and it is a whole bunch more paper work, once the repo order is issued then it is my job to take the car. Thanks for the info, any more would be greatly helpful

According to consumer protection laws, if you attempt to repo a vehicle and the owner offers to pay you all the outstanding back payments, repo fees, etc. (which should be listed in the paperwork you receive) you must accept payment in lieu of taking the vehicle. That is why you would be a licensed debt collector. You might want to check your state credit statutes and also those listed on the web site of the Federal Trade Commission at www.ftc.gov They will shed light on the laws with which you will need to comply. Another approach might be to call a local bank or credit union and ask them about their requirements for anyone they would contract with to repo property. The person I talked with said the typical repo agent stays in business less than a year because they are either too slow in locating and repoing a vehicle or because of cash flow issues (you might repo 15 cars one month and only 2 the next). Therefore, banks are often looking for new repo agents and they may be willing to advise you.

In montana I know for a fact that once the repo order is issued they must then deal with the one that issued the order and the it is up tho the one repoing to either take the car or item being repoed or to collect the money. Being that I am in bus to repo I will repo the car and let the creditor deal with it... As for licencing I found out that in MT anyone with a PI licence can licence me to repo. it is expencive but worth it being there is alot of work to be repoed. Bank usually have several different people looking for the same cars at the same time, it is like a race to the finish line.I know of about 8 repo compaies in my area and all have been in business for at least 5 years. any more info would be helpful. Thanks