IN HB1272

Establishes mandatory state licensure for collateral recovery agencies (repossession companies) in Indiana, effective July 1, 2026, requiring a license to repossess collateral, attempt repossession, advertise repossession services, or use license plate recognition technology

Renames the Private Investigator and Security Guard Licensing Board to include "Collateral Recovery Agency," expanding the board from 5 to 7 members by adding two representatives from the collateral recovery industry

Requires licensees to maintain $1 million per occurrence/$3 million aggregate liability insurance, a $1 million dishonesty bond, a physical location with signage in Indiana, secure storage facilities, and certification from a nationally recognized training program

Establishes personal effects procedures requiring legal owners to send certified mail notice to debtors listing items valued over $5, with a 30-day redemption period before the licensee may dispose of unclaimed property

Disqualifies individuals convicted of felonies from obtaining a collateral recovery agency license and exempts financial institutions, automobile rental companies, and retail equipment sellers from the licensing requirements when conducting their own repossessions