Colorado Repossessors Must Have a Surety Bond
The Repo Man can keep quite busy when people don’t make their car payments. Repossessions can be a quick way for car lenders to cut their losses. But creditors can easily take advantage of debtors in court, because the creditor is typically not liable for damage to property caused by an independent contractor they hired to repossess a vehicle.
In Colorado, the General Assembly requires respossessors to carry a surety bond, which holds the creditor responsible for the actions of their hired repossessors. The surety bond is $50,000 and must be filed with the Attorney General of Colorado.
A repossessor in Colorado may not do business until they first disclose to a creditor whether or not they are bonded. Failure to disclose this information is a violation of the “Colorado Consumer Protection Act.” Falsifying a bond application or misrepresenting information is a Class I misdemeanor.
A bonded repossessor cannot “breach the peace,” meaning they cannot break the law during a repossession.
Repossessors Must Follow Certain Rules, Which Include:
- Repossessors may not threaten violence or be physically violent.
- They may not damage property.
- When taking possession of a vehicle, they may not disable or render unusable any computer program or other similar device in the motor vehicle if immediate injury to any person or property is foreseeable. They are liable if their actions cause injury to a person or property.
- Repossessors must notify a law enforcement agency prior to the repossession, including providing the name of the owner, the name of the repossessor, and the name of the mortgagee, lienholder or assignee. Notification should be at last an hour before repossession, when possible, and no later than one hour after a repossession.
Cars are not the only item that can be repossessed. Any property listed in a legal agreement can be used as collateral to a debt. This can include real estate, cash accounts, machinery, collectables and insurance policies.
Surety Group.com helps Colorado Repossessors stay compliant with state laws. We offer free, no-obligation quotes, low rates and fast service. Email email@example.com, apply online or call us today at 1‑844‑432‑6637!
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