TAMPA, Fla. -

Handling personal property left in a repossessed vehicle is one of the most difficult industry challenges. It’s one that can result in significant consequences if not completed properly, as highlighted by a consent order made public in October involving the Consumer Financial Protection Bureau (CFPB) and Nissan Motor Acceptance Corp. (NMAC).

To help repossession agents, finance companies and other operations involved in repossessions, RISC recently generated a free report in partnership with Hudson Cook that summarized the details of personal property laws on a state-by-state basis.

Part of a commentary compiled by RISC president Holly Balogh and sent to SubPrime Auto Finance News, the company tried to illuminate the complex situation by taking a pastime path many people enjoy — trivia.

Balogh asked, “What do the states of Alaska, Arizona and Alabama have in common?” She then replied, “Besides starting with the letter A, they do not have any specific laws for how to handle personal property. Therefore, federal law must be adhered to.”

She had another one. 

“What state requires a notification that the repossession agent is in possession of personal property? If you guessed Indiana, you got it right,” she said.

And then Balogh offered one more.

“What state has a requirement for special treatment for medical devices in the vehicle? If you guessed Maine, you would again be right,” she said.

While trivia certainly can be enjoyable, maintaining compliance with this aspect of repossession certainly is not time for playing since part of that $5 million consent order involving the CFPB and NMAC dealt with personal property in repossessed vehicles.

“Education is paramount to protecting yourself from liability in several different areas of the repossession process. When it comes to personal property, the rules vary by state and some states have specific regulations. Unfortunately, lenders may unknowingly put themselves at risk for fines if they are unaware of these unique laws,” Balogh wrote.

“As you can see from these few examples, some states, nine in all, have very unique and specific personal property requirements. RISC has taken a key step to support the industry and help all parties understand what rules must be followed,” she went on to say.

The RISC report can be found on this website.