Regulatory Alerts2021-02-13
Regulatory Alert Unlicensed Repo 2013
The New Mexico Financial Institutions Division issued this alert to inform small loan licensees that utilizing unlicensed repossessors is unlawful under state statute. The regulator highlights common misconceptions where licensees mistakenly rely on expired licenses, out-of-state authorizations, or Public Regulation Commission towing certificates for vehicle repossession. Small loan companies are required to verify that all repossessors hold a current license from the Financial Institutions Division before contracting their services.
Susana Martinez GOVERNOR J. Dee Dennis, Jr. SUPERINTENDENT May Kay Root DEPUTY SUPERINTENDENT James C. Kay CHIEF GENERAL COUNSEL Cynthia Richards DIRECTOR Alcohol and Gaming Division (505) 476-4875 Boards and Commissions Division (505) 476-4600 Construction Industries Division (505) 476-4700 Financial Institutions Division (505) 476-4885 Manufactured Housing Division (505) 476-4770 Securities Division (505) 476-4580 Administrative Services Division (505) 476-4800 New Mexico Regulation and Licensing Department FINANCIAL INSTITUTIONS DIVISION P.O. Box 25101 ▪ 2550 Cerrillos Road ▪ Santa Fe, New Mexico 87505 (505) 476-4885 ▪ Fax (505) 476 -4670 ▪ www.rld.state.nm.us/fid “UNLICENSED REPOSSESSORS” The purpose of this alert is to inform licensees within New Mexico’s small loan industry about the unlawful practice of unlicensed repossession. This alert contains important reminders that, as a best practice, small loan licensees who contract with repossessors should verify that repossessors are licensed by obtaining a current copy of the repossessor license from FID. Under New Mexico law, “No person shall conduct within this state the business of a repossessor without having first applied for and obtained a repossessor's license.” §61-18A-5 NMSA 1978. During small loan company examinations, the Financial Institutions Division has discovered that many small loan companies are utilizing unlicensed repossessors under the following circumstances:
- Small loan licensees are unaware that a repossessor’s license has expired;
- Small loan licensees mistakenly assume that a towing company certificate issued by the New Mexico Public Regulation Commission authorizes a towing company to repossess vehicles;
- Small loan licensees mistakenly assume that a repossession license issued by a different state authorizes repossession to occur in New Mexico. REGULATORY ALERT
New Mexico Regulation and Licensing Department FINANCIAL INSTITUTIONS DIVISION Please note that any person or company that repossesses vehicles within the boundaries of the state of New Mexico must hold a current license as a repossessor with the Financial Institutions Division. A towing certificate issued by the New Mexico Public Regulation Commission does not authorize vehicle repossession. Enclosed are step by step instructions on how your company can verify a repossessor’s license online. Additional inquiries about whether a company or individual is licensed as a repossessor can be directed towards either of the individuals listed below. You may also visit the FID website at www.rld.state.nm.us/financialinstitutions/ for important information that becomes available to the industry, for information regarding applications and renewals, and for links to the statutes and regulations governing small loan companies and repossessors. David Mora Diego Perez Senior Consumer Examiner Financial Examiner Phone: (505)222-9859 Phone: (505)476-4568 Email: David.Mora@state.nm.us Email: Diego.Perez@state.nm.us
Cynthia Richards Director Financial Institutions Division