Asset Recovery Specialist Recovery Procedures Flashcards
7 cards from real CARS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Asset Recovery Specialist Recovery Procedures flashcards as text
Which federal law primarily governs the disclosure requirements lenders must provide to borrowers in auto loan agreements?
Answer: The Truth in Lending Act (TILA)
TILA requires lenders to disclose key loan terms including APR, total finance charges, and default/repossession rights before the loan is consummated.
When must a lender send a deficiency notice to a debtor after the sale of repossessed collateral?
Answer: After the sale, when a deficiency balance remains and the lender seeks to collect it
A deficiency notice is sent post-sale when the auction or private sale proceeds do not cover the full outstanding loan balance.
A recovery agent repossesses a vehicle and discovers a car seat with an infant inside. What is the required immediate action?
Answer: Stop the repossession and ensure the child's safety above all else
The safety of a person inside or attached to the collateral always supersedes completing the assignment.
What is the primary purpose of a 'Notice of Right to Cure' sent by a lender before repossession?
Answer: To give the debtor an opportunity to catch up on missed payments and avoid default
Some states require lenders to provide a cure notice, giving debtors a set window to bring the account current before repossession proceeds.
Which of the following is an example of 'condition report fraud' in asset recovery?
Answer: Failing to list a minor scratch discovered at pickup
Omitting damage that existed at time of recovery exposes the agency to liability for damage they did not cause but cannot prove was pre-existing.
Under UCC Article 9, what standard must a lender meet when selling repossessed personal property such as a vehicle?
Answer: The sale must be conducted in a 'commercially reasonable' manner
UCC Article 9 requires that every aspect of the disposition of collateral — including method, manner, time, and place — be commercially reasonable.
A recovery agent is assigned to repossess a boat at a marina. What unique consideration applies that would not apply to a standard auto repossession?
Answer: Coast Guard documentation and state titling laws may impose additional requirements
Documented vessels under Coast Guard documentation follow federal titling rules in addition to state laws, adding layers of compliance for the recovery agent.