Credit Acceptance Corporation – The next to step up

Memo from ARA President, Vaughn Clemmons

To The Repossession Industry and ARA Membership,

Several national lenders have reached out over the past week looking for ARA‘s input on how they can implement changes and help our agents with the sometimes-arduous task of getting additional fee approvals. Credit acceptance is the next client to step forward and make changes to how their agents can receive compensation for the usage of flatbeds and dollies.

It is my hope that lenders around the country will follow suit with CAC by implementing these steps to allow for a quick and painless pre-approval for flatbed and dolly fees. This level of partnership CAC has displayed exemplifies the goal ARA strives for in creating industry standards.

Credit Acceptance has adopted the following list of pre-approval requirements:

Pre-approval is permitted on all 4WD and AWD vehicles, vehicles with e-brakes or electric e-brakes engaged, and damaged vehicles that can’t be towed without a flatbed or dolly without the risk of further damage.
If the above mentioned criteria are met, then the agent will take pictures of the additional equipment used and will provide them as documentation to the client that a flatbed or dollies were utilized during the repossession process.
Additionally, the agent will notify the client as to the reason for the need for the additional equipment. The agent will then submit a request for the fees through RDN that must be accepted or denied within 1 business day; fees for these services should be $150 or less.

I would like to thank CAC for listening to and adapting to the needs within our industry. The process they have laid out will allow its agents to receive approval expeditiously, saving their business the most valuable commodity of all – time. We gratefully appreciate the attention given to this matter and for working quickly to implement these changes.

ARA has been and will continue to work extremely hard in setting industry standards. We have finally reached a point of making a difference. Clients are understanding the importance and value of this industry network.

Furthermore, ARA firmly believes that we can continue to strive for change within the industry by communicating effectively with all lenders, creating a bridge for our agencies’ concerns, and allowing for meaningful conversations between the service providers and the client.