Be Wary of Repo Scams

There are a lot of good recovery agents out there.  However, TIADA has recently learned of several dealers that have been charged fees well in excess of quote prices or estimates. Please take precautions when dealing with unknown entities that don't list a street addresses to avoid such inducemnts.  
Often Texas dealers must outsource vehicle recoveries when a customer takes a vehicle out of state (or if towed / impounded out of state).  TIADA has recently received several calls reporting suspicious activity by third party repossession companies found on the internet that claim to quickly assist their customers with recoveries accross the United States. What initially appears to be a reasonable repossession cost is oftent just a very low estimate provided by the internet referral company to get the dealer to enter into a contract.  The cost of the actual repossession will likely end up costing considerably more. Why? Well, it turns out that the actual company recovering the vehicle is not the same company that you found online and signed a contract with. Company B is just another contracor or agent of the online company that is likley to tack on hundreds or thousands of dollars in extra get your vehicle back.  This fact is often discovered when you are at the storage lot and AFTER you have traveled thousands of miles to pick up the car. 

Always get referrals from local dealers, state associations, and read online reviews of the company in question before you sign a contract. Make sure the internet referral company and reposession company are both properly licensed and make sure any bide or estimate is clear as to fees for recovery and storage and any other fees. Another best practice is to contact the state where the alleged recovery companay operates to verify licenses, complaints, and other relevant information.

You may also ask for pictures of the vehicle in the lot prior to pick up to confirm the condition of the vehicle or ask to inspect the vehicle in person prior to any payment.


There have been no comments made on this article. Why not be the first and add your own comment using the form below.

Leave a comment

Commenting is restricted to members only. Please login now to submit a comment.