Personal Property Notices – A Lenders Responsibility

Understanding Indiana’s Repossession Notification Requirements on Personal Property in Indiana

Over the past six months the members of the Indiana Professional Repossessors Association (INPRA) have seen an increased demand by their lienholder clients for Personal Property Notification Letters to be sent by its members involved in repossessions. INPRA releases this statement to clarify its position on this issue, and to educate its members and their clients.

Indiana Law, pursuant to Indiana Code 32-34-4-5, requires that if items of personal property having an estimated aggregate value of at least ten dollars ($10) are discovered within a vehicle that has been lawfully repossessed, the creditor (emphasis added) must notify the debtor as follows:

1. The notice must be written.

2. The notice must list each item of personal property having an estimated value greater than five dollars ($5).

3. The notice must include the estimated aggregate of all the items of personal property.

4. The notice must include a statement that if the debtor does not claim the property within thirty (30) days after the notice was sent, the personal property will become the property of the creditor with no right of redemption by the debtor; and,

5. The notice must be sent by certified mail

(b) If the debtor does not claim the items of personal property included in the notice within thirty (30) days after the notice was mailed, the items of personal property become the property of the creditor with no right of redemption by the debtor.

Although this is not a requirement for our Indiana-based clients and lienholders who understand Indiana law, many clients and lienholders still demand that Personal Property Notification Letters by sent by the agents (i.e., our members engaged in repossession services).

This process is costly, time consuming, and places an additional burden on the agent, oftentimes with no compensation or reimbursement of expenses. Because of this INPRA has recently completed a legal review of Indiana law with our Indiana based attorney.

Indiana law clearly states the “creditor” is responsible for sending the Personal Property Notification Letters.

A “creditor” by definition “is the one lawfully repossessing the vehicle. (See Ind. Code 32-34-4-1). In contrast, our members and their agents are a “repossession agent” which by definition is “a person who physically repossesses a motor vehicle or watercraft”. (See Ind. Code 26-2-10-2.)

Our members are third party agents hired by a creditor when that creditor lawfully decides to repossess a vehicle. Our members, as agents, physically facilitate that lawful repossession on the behalf of the creditor.

Based on this legal review, it is the position of INPRA and our attorney that our members within the State of Indiana are not responsible for providing Personal Property Notification Letters. Rather, this is the creditor/lienholder’s obligation. We encourage clients and lienholders to reach out to their agent partners in Indiana to determine an acceptable solution.

Todd Case
President
Indiana Professional Repossessors Association

About The INPRA

Repossession companies in the State of Indiana have joined together to form the Indiana Professional Repossessors Association – INPRA. Collectively we perform nearly 90% of the repossession efforts in the State of Indiana. Our goal is to ensure industry progression through education and communication with industry vendors, financial institutions, regulatory agencies, local government, and the consumer.

Together, we can make positive changes that will ensure safe and effective collateral recovery across the state. We shall endeavor to reduce liability and bring uniformity to the repossession industry in our state, so that clients and consumers alike know each repossession is handled in the most professional manner possible. This means ensuring each agency performs their duties while maintaining the highest level of compliance and in accordance with the law.