Anticipated Turn-Around [b]in Repo Business

Although many consumers have been shielded by the federal government’s Covid relief act for delinquency of their mortgage, student loans and rent payments, the same may not be said about auto loans, which are not covered by the act. While the pace of auto repossessions has been slow since the COVID-19 pandemic outbreak, that may soon change. “It really depends on how the next several months go,” said Matthew Bavaro, a partner at The Loan Lawyers law firm in Fort Lauderdale. “It’s depending on what kind of relief package Washington is able to pass. We definitely expect to see lenders get more aggressive as the months progress,” he said. Robert Murphy, a Fort Lauderdale consumer lawyer and a University of Florida law school faculty member, fears tighter credit and more repos may be in store over the long term. “People are becoming really desperate,” he said. “Longer term I am really concerned — depending on stimulus, this could get a lot worse. I think there is a likelihood we are going to see higher repossessions and a tightening in credit available which has real implications for consumers,” he added. For those who are in the repossession business, that may be good news, as the industry has taken a hit, operating at 50 to 60% capacity. “There’s no one in today’s business environment that’s operating at 100%,” said Les McCook, executive director of the of American Recovery Association, which is based in Texas and has members in Florida. Source: https://www.sun-sentinel.com/