Indiana would require licenses to repossess pledged or rented property

Indiana would require a license to repossess, attempt to repossess, advertise repossession services, or scan license plates to repossess property. The rule covers personal property under a security, lease, or rental agreement. It excludes recreational vehicles fixed to a foundation and used as a primary home. Financial institutions and car rental companies are exempt when acting for themselves. Certain equipment businesses are exempt when repossessing the types of goods specified in the bill. The proposed license rule would start July 1, 2026.

Applicants would have to prove they completed certification and training through a nationally recognized program and maintain a secure storage site. Licensed agencies would need an Indiana location and space to store vehicles and people's belongings. Individuals with felony convictions could not qualify. Agencies would need at least $1 million in liability coverage per incident, $3 million overall, and a $1 million bond against dishonest acts. A canceled insurance policy would suspend the license unless the board receives proof of replacement coverage before the cancellation takes effect. These proposed requirements would start July 1, 2026.

Agencies would keep repossessed property in secure Indiana storage until it is recovered or sent to auction. The belongings rule covers items found in or on the property when it is repossessed. Agencies could charge the debtor or the party with a legal claim to the property for storage, with an extra fee if it contains hazardous materials. Agencies would list and store belongings found with the property. If those belongings are worth at least $10, the lender or other legal owner would have to send notice by certified mail. If the debtor does not claim the belongings within 30 days after notice is sent, the agency could dispose of them.

Licensed agencies would erase personal information from repossessed property using a standard electronic method. The duty applies when an agency has reason to believe the property collects or stores personal information. An agency that follows the erasure rule would be protected from civil liability under this provision. Erasure would occur as soon as practical after repossession and before the agency releases the property.