FORT WORTH, Texas — Buzz throughout the repossession industry nowadays often has to do with limiting liability as much as possible. A pathway agencies are adopting with more frequency is the use of license-plate recognition technology.

Cort DeHart, president of Digital Recognition Network, said that while attending a recent industry event that agencies not only are securing a primary camera and related equipment but often a second or third set, too.

"That's really encouraging because they're seeing the value in it," DeHart noted.

As opposed to traditional skip-tracing methods, DeHart emphasized how LPR technology better connects to the collateral rather than the debtor. He shared that repo companies are delighted in the greater recovery rates with LPR technology, but it's also reduced the chance of running into a pitfall related to federal regulations connected with debt collections.

"When you think about the primary liabilities for lenders, skip-tracers and repo companies, there is plenty of chance for errors if improper contact is made with the debtors," DeHart stated.

"What LPR technology allows them to do is not have not to use those traditional skip-tracing methods to contact the debtor and track him down. Having more contact with the debtor increases the potential for a violation," he continued.

Furthermore, DeHart stressed that repo agencies are seeing the sheer chance of finding a vehicle up for repossession increases because of LPR technology. Using a credit file to track a debtor at a residence or place of employment no longer are the only potential places for a pick-up.

"One of the things that LPR technology and the availability of real-time pickup allows is when you go by malls and parking lots, Walmart, a football game during the first three quarters or anywhere someone might be for just a few minutes, the collateral is available for repossession," DeHart explained.

"There's a place for the traditional skip, and a lot of cars are still found that way," DeHart went on to say. "But we're not looking for the person so much as we're looking for the actual car. A lot of times, the person who bought this car and never made a payment on it has given it to their brother in law or even sold it under the table and somebody else is driving the car. The credit information is irrelevant."

While this technology has been put into practice by law-enforcement agencies for several years, DeHart noted LPR technology really hadn't taken off in the repossession industry until the past 18 months. However, since January, he's seen exponential growth in its use, a trend he believes benefits lenders and repossession agencies.

"It's not surprising with the economy being down that guys in the repo industry are looking for ways to increase their revenues and increase their recoveries," DeHart pointed out. "These tools have proven to be valuable time and time again."