Member Article

Now that it appears the COVID-19 quarantine may be on the verge of ending, there are issues to consider before re-starting collection operations. When is too soon? Are there any special notices that could or should be sent? What about voluntary surrender of collateral during shelter in place? We will address these issues as well as lien priority and credit reporting. This is a fast-moving area as companies and employees go back to work, and this webinar looks to provide some thoughts as to navigating the environment.

Webinar Recording

Key Takeaways

1. As we look to re-start the mechanics of repossession and replevin, we suggest confirming that the paperwork that was filled prior to the shut down is still current, including SCRA.
2. Check your vendor contracts to determine whether you should re-visit them in light of the pandemic.
3. Re-evaluate all COVID-19 policies under the lens of both future COVID-related litigation and regulatory scrutiny.
4. When considering whether to send out a new notice of repossession, be sure to evaluate the current state-by-state prohibitions in place during the declared state and federal emergency, to be able to balance the risk of reinitiating repossession against the business benefit.
5. For lien perfection, lien priority, and lien release issues:
1. Check your state’s DMV webpage and the resources provided by the different trade groups. Many have compiled guidance and resources for your benefit.
2. For more unique or higher risk scenarios, check with your outside counsel for guidance.