September 5, 2025
A few months ago, a routine recovery assignment spiraled into a legal nightmare for a seasoned professional — one that nearly ended a distinguished career in both repossession and law enforcement.
An agent from a reputable recovery company was working accounts in a neighboring state, supported by a camera car. During a standard patrol, the camera car flagged a wanted unit — with a child inside. The agent immediately contacted local law enforcement, and two officers accompanied him to the location.
Upon their arrival, the debtor jumped into the driver’s seat and refused to exit the vehicle. The officers contacted their supervisor, who advised that because the debtor refused to vacate the vehicle, it constituted a breach of peace — and the recovery could not proceed.
Days later, the situation took a sharp turn. A code enforcement officer from the city contacted the company owner, requesting the agent’s personal information. The city was issuing four code violations against the agent or company for operating without a local business license.
The owner explained that the agents were only in the city to recover collateral, not solicit or conduct new business, and that the company held a valid statewide business license. However, they lacked a city or county license for that specific jurisdiction — a technicality that triggered the legal action.
In court, the owner — unaware of the local licensing requirement — entered a reluctant guilty plea. The consequences were staggering:
- 30 days in city jail (suspended)
- 12 months unsupervised probation
- $1,772 fine
- Prohibition on firearm possession
- Mandatory court appearances at the court’s discretion
For the owner — a 25-year law enforcement veteran and current law enforcement officer — this conviction posed a devastating threat to his professional standing and personal life.
But he didn’t give up.
Determined to clear his name, he hired an experienced local attorney and began a costly and time-consuming appeal. After multiple court trips and $3,500 in court fees (not including legal expenses), justice prevailed: the original conviction was overturned. He agreed to pay two court costs, and most importantly, his record was cleared.
Why This Matters to You
This incident is more than an isolated legal battle — it’s a wake-up call for recovery professionals operating across municipal boundaries.
Here’s what every agency owner should take away:
- Know Local Ordinances: Don’t assume a state license is enough. Cities and counties may have their own business licensing rules.
- Consult Legal Counsel: If you’re working outside your home base, get legal guidance on municipal codes and business requirements.
- Document Everything: If law enforcement is involved, maintain a clear and documented chain of communication.
- Train Your Agents: Make sure field agents understand how to handle unusual situations, especially those that could be misinterpreted legally.
This agency owner fought hard to protect his career and reputation — and won. But the fight was costly, stressful, and avoidable with the right preparation.
Let this story be a lesson and reminder to every recovery agency: be informed, be proactive, and protect your business.
Stay safe, stay compliant,
The ARA Board of Directors
