Collateral Recovery Act

The Collateral Recovery Act governs the business of repossessing vehicles and other secured collateral, requiring repossession agencies, recovery managers, and their employees to be licensed or registered before operating, subject to qualification standards, criminal background checks, application fees, and identification requirements. It vests a state commission with authority to make rules, investigate complaints, issue subpoenas, hold hearings, and impose discipline — including refusal, suspension, revocation, summary suspension, cease and desist orders, injunctions, and criminal penalties — with rehearing, restoration, and judicial review available to those affected. It also sets operational duties for repossessors themselves, such as notifying law enforcement of a repossession, issuing recovery documentation to the debtor, and preempting conflicting local regulation.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.