RepossessorsConduct of Business
Section § 7507
If a company with a license changes its corporate officers or adds new partners, they must inform the bureau within 30 days. New officers and partners need to fill out forms provided by the director. The director can suspend or revoke the license if any new officer or partner has previously done something that would make them ineligible for a license, as defined in another law section.
Section § 7507.1
If you hold a license or a certain certificate, you need to inform the bureau about any address change within 30 days. Your main business location can be at home or a commercial location, but it must be where you have a permanent office.
Section § 7507.2
This law section indicates that a licensed professional is accountable for any violations committed by their employees or managers while on the job. Additionally, the licensee must keep detailed records about each employee or contractor, including their personal and employment details, which must be made available to the relevant bureau for inspection or upon request.
Section § 7507.3
This law requires repossession agencies to keep thorough records of their activities, like repossession orders, vehicle condition reports, and transaction records from the sale of repossessed items. They need to keep these records, including bank statements for the trust account, for at least four years so the bureau can review them if needed. Repossession forms can be in different formats, like paper or electronic. Also, the places where repossessed items and personal belongings are stored must be available for bureau inspections.
Section § 7507.4
This law states that a repossession agency or its employees cannot ask for money instead of repossessing an item, and they are not allowed to sell any items they've recovered either.
Section § 7507.5
When a company repossesses a vehicle or other collateral, they can't charge for recovering, transporting, or storing it unless the owner has approved these charges beforehand. Also, they can't do any repairs, cleaning, or detailing on the item and charge the owner for them.
Section § 7507.6
This law requires that if a violent incident occurs involving a licensed professional or their employee during work, resulting in a police report or injury, a notice must be sent to the relevant authorities and the person who gave them the job within seven days. This notice should be sent on special forms and by certified mail. Even if no official report or injury happens but there is a threat of violence, a notice can still be sent. However, such notices can't be used for anything other than informing the next person taking over the assignment about potential risks, and they don't protect against defamation claims.
Section § 7507.7
If a licensee or anyone associated with them gets a civil court judgment against them for more than the maximum amount allowed in small claims court, they have seven days to send a copy of this judgment to the chief in charge.
Section § 7507.8
If you're a licensed business advertising your services, you must include your name, address, and license number as listed with the relevant bureau in every advertisement.
Section § 7507.9
When someone repossesses a vehicle or other secured property, they must remove any personal items that can be detached without tools, make a detailed inventory, and store the items for at least 60 days if they belong to someone other than the licensee. Dangerous items like weapons or drugs must be given to law enforcement, while others posing health hazards should be safely disposed of. The inventory list must be provided to the property owner within specific time frames, and after 60 days, unclaimed items can be disposed of, but accurate records must be kept. The owners can get their personal items back if they contact the repossession agency. Additionally, the document outlining these items is confidential and can only be shared under specific circumstances, like with a court order or the debtor's consent.
Section § 7507.10
Section § 7507.11
This law says that when someone with a license or certificate gives a client a written report, they must make sure that the information and facts in the report are accurate and true before submitting it.
Section § 7507.12
This law states that a repossession is considered complete once a repossessor either enters the vehicle, attaches it to a tow or repossession vehicle, moves the whole vehicle, or takes control of it in some other way. Additionally, only the legal owner can instruct the repossessor to release the vehicle, unless someone else has the legal authority to do so.
Section § 7507.13
This law section specifies that a licensed repossession agency isn't held responsible for the actions of lenders, debt collectors, or vehicle owners when they receive orders to repossess. It also states that these parties are not liable for what the repossession agency does following the assignment, and each is entitled to protection against losses arising from these actions, including legal fees. No party can pressure another into breaking any laws related to repossession. Annually, repossession agencies must provide certain legal documents to lenders they work with.
Section § 7507.115
This law makes it clear that if you hold a license relating to collateral, you cannot appraise or assign a value to any collateral, whether it's damaged or not. However, you are allowed to create a condition report. This report provides a general overview of the collateral's state but may not list all damages or missing parts. An important disclaimer must be included in the report, stating that it reflects a general assessment and not every single issue.
Section § 7507.125
This section allows the temporary use or removal of personal items attached to or near the items being repossessed, if necessary for safe recovery or protection reasons. It also permits the removal of any locks or security devices on the item before or during repossession without prohibitions. There's a rule that you can't charge a storage fee for these items for the first week, and any personal items used or removed should be returned quickly according to other laws.