DAYTONA BEACH, Fla. -

Veteran repossessor and Time Finance Adjusters executive Patrick Altes believes there has been an industry myth circulating for years about how voluntary repossessions are expected to unfold easier for both agents and lenders.

However, Altes takes a cautious approach about voluntary repossessions saying, “The reality is that the chances of finding the easy, should-be-done-cheaper voluntary repossession is as difficult to find as Sasquatch.”

Altes noted several of the criminal incidents where repo agents have been harmed or even killed were associated with voluntary repossessions. He also pointed out numerous other episodes quickly evolved from being cooperative to confrontational.

The TFA executive thinks many accounts assigned to repo agents with the tag “voluntary repossession” never should have been assigned as such.

“It puts the customer more in control of the time, place, and manner of surrender,” Altes acknowledged.

“Since it’s based on the customer’s cooperation, there’s the possibility of commonplace no-shows and re-scheduling. The customer can force the repossession to happen at a time when he and his buddies are all sitting around waiting for the arrival of the recovery agent,” he continued.

Altes added voluntary repossessions sometimes place the lender into a precarious position, too. He shared anecdotes about how vehicles associated with voluntary repossessions sometimes are in poor condition, full of trash or with certain equipment removed.

“The $100 savings in repossession fees translated into a $1,000 hit on the car’s residual value,” Altes suggested.

In summation, Altes reiterated that both repo agents and lenders should approach voluntary repossessions with extreme caution.

“You might like to think that voluntary repossessions are friendly exchanges, like old friends meeting over coffee. Those do exist, but they are a rarity. Ask your repossessor; I am sure they will tell you,” Altes emphasized.

“There might be some internal reporting benefit to the creditor to consider an account a ‘voluntary,’ but the potential costs to their repossessor or even their own collateral seems far too high, in my book,” he concluded.

Patrick Altes is the owner of Falcon International, one of the nation’s oldest and largest independently owned repossession agencies. More of his industry commentary can be found at ontheroadwithfalcon.blogspot.com.