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Bill

SB 295

Licensing of collateral recovery services.

2025 Regular Session Introduced by Stacey Donato and 2 co-sponsors

Indiana bill requiring collateral recovery (repossession) companies to obtain state licenses and meet operational standards to regulate industry practices and consumer interactions.

Senator Donato added as coauthor
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Bill Summary · SB 295

Legislative bill overview

SB 295 establishes a licensing and regulatory framework for collateral recovery services in Indiana. The bill would require individuals and businesses engaged in repossession and similar collateral recovery activities to obtain state licenses and meet specified operational standards.

Why is this important

Collateral recovery (repossession) is a high-contact enforcement activity that can escalate into confrontations. Creating licensing requirements could establish baseline qualifications, training standards, and accountability mechanisms to protect both consumers and repossession agents, while potentially reducing abusive practices or unsafe tactics in the industry.

Potential points of contention

  • Industry compliance costs: Licensing fees and compliance requirements may increase operating costs for repossession companies, potentially raising consumer costs for financed goods
  • Enforcement and oversight: Questions about which state agency administers licensing, inspection frequency, and resources needed for adequate regulatory oversight
  • Definition and scope: Ambiguity about what activities qualify as "collateral recovery services" and whether distinctions exist between different types of enforcement (vehicle repossession vs. other collateral)
  • Consumer protection vs. business burden: Balancing robust consumer protections against regulatory burdens that could reduce market competition or eliminate smaller operators

Compiled from official sources — confirm details with the bill’s official record.

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