City of Chicago Licensing

New Licensing

In May 5, 2009, the City of Chicago implemented some auto repossession licensing requirements for all auto repossession companies doing business within their city limits. The licensing is different than what the State of Illinois requires for repossessors operating in the state. This could be why Chicago is considered to be it's own state within the State of Illinois. Chicago has several laws and statutes that supersede the Illinois laws. Once such law is the ban of handguns within the boundaries of the City of Chicago which was enacted in 1982. It is one of the strictest anti-gun laws in the country. Our staff feels that our industry is already over regulated by state regulations. It is our opinion that cities enacting laws that trump state legislation are tying to increase their revenue through licensing fees and fines. It may also be an attempt to show favoritism to auto repossession company owners that benefit the cities as well as the politicians that sit in office.

The City of Chicago defines a repossessor as a person who is in the business of storing, recovering, or locating collateral such as a motor vehicle, boat, recreational vehicle, motor home, motorcycle, appliance or other personal property that is subject to a security agreement. A repossessor may also provide skip tracing services, and recovered collateral transportation.

Repossession Defined and Applicant Requirements

Chicago has two classes of repossesors:

1) Class A: FEE $600.00 For legal entities (Corporations, LLC’s, Limited Partnerships) who operate a Repossessor business.

2) Class B: FEE $300.00 For Sole Proprietors engaged in the business of a Repossessor or for individuals who perform repossession as employees of a Class A or Class B licensee.

Class A and B Licenses are renewable every two years.

You must apply in Person at the Department of Business Affairs and Consumer Protection (BACP)
121 N. LaSalle St., City Hall, Room 800.
Monday-Friday 8:30am-4:30pm
An appointment is recommended and can be made online or by calling
(312) 74-GOBIZ / 744-6249

Application Requirements:

1) The exact business address (P.O. boxes are not accepted).
2) A description of the business activity.
3) Personal Information: Name, residence address, social security number, date of birth, e-mail address, and official photo ID for every owner, officer, member, any person having 25% or more interest in the business, and the registered agent.
4) Tax ID Numbers: Federal Employer Identification Number (FEIN) apply at www.irs.gov, State of Illinois Business Tax Number (IBT) apply at www.revenue.state.il.us, if applicable.
5)Disclosure: Disclosure of any felony or other criminal offenses involving theft, bribery, or dishonesty
6)Insurance: Commercial Liability Insurance with limits of at least $1,000,000 per occurrence which includes commercial general liability for wrongful repossession, garage keepers, on hook, drive-away, bodily injury and property damage for all Class A applicants, and Class B Sole Proprietors. (Individuals who are repossessors and employed by Class A or Class B licensees do not require commercial liability insurance,
but must apply for a Class B license).
7)Fingerprinting: Every officer, member, controlling person and employee is required to
undergo a criminal background check through fingerprinting by BACP.

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