Attention Lenders – Contingency Doesn’t Work

We can no longer afford to do contingent work. There needs to be a change and it needs to happen now. – Alliance of Illinois Repossessors

While a recent contract is causing most of us to take a cut in fees, despite the increase of their recovery fee, and the recent CFPB ruling hinting at not being able to collect a dime in debtor fees in the very near future, recovery agencies everywhere are wondering what will come next.

A simple internet search shows the top five auto lenders in the country are reporting $3.7 Billion in profits while the agencies they rely on to recover their collateral are struggling to keep up with ever increasing fuel prices, taxes, insurance premiums, fleet maintenance, employee wages, and other overall costs of doing business.

In 2012 there were 346 repossession companies in Illinois. As of 2022, there are 34 left. As mentioned in the last letter put out by the Alliance of Illinois Repossessors, as a group, we perform 85% of all recoveries in Illinois.

We can no longer afford to do contingent work. There needs to be a change and it needs to happen now.

Until contingency is dropped or serious changes are made by the forwarding companies/lien holders in the way we are paid for work performed, the companies in our alliance will be carefully vetting all orders sent to us to ensure the highest probability of recovery.

This may lower the recovery rates for the forwarder/lien holder, but it is the only viable way to ensure the last 34 recovery agencies in Illinois remain in business because once we are forced to close, the recovery rate in the state will then drop to zero.

About The Alliance of Illinois Repossessors

The Alliance of Illinois Repossessors is a gathering of Repossession companies that will unite for the progression of the repossession industry within our state. AIR is composed of licensed members operating repossession agencies with the State of Illinois. The purpose of this Association is to strengthen understanding between licensed repossessors, law enforcement, financial institutions, regulatory agencies, and the consumer. Alliance of Illinois Repossessor’s (air-repo.com)