IMPORTANT revisions to CAC dolly and flatbed fees

From the ARA

In yesterday’s announcement on Credit Acceptance Corporation’s adoption of dolly fees, there have been some last-minute amendments that were later announced. It is hoped that these changes better clarify additional scenarios in which preapproval is or is not necessary, and why.

As previously stated, effective Oct 1st, 2022, Credit Acceptance is going to allow you to use a flatbed truck or tow dolly without pre-approval.

Exclusions

This process change DOES NOT apply to repossessions in the following States:

CA, CT, MD, NV, NY, OH, and PA

Reason

Credit Acceptance is required to send a notice of repossession in these states and the notice is triggered automatically after the repossession is reported and, at this time, we are not able to account for the additional expense if it is not pre-approved.

The Change

Pre-approval of a flatbed truck or tow dolly is no longer required if:

The repossession is in any state except CA, CT, MD, NV, NY, OH, and PA
The vehicle has 4WD, AWD, E-Brakes, is Electric or is damaged and can’t be towed without a flatbed or tow dolly without causing further damage
The expense amount is $150 or less, or matches your contracted rate

Again, we genuinely appreciate the attention that Credit Acceptance Corporation has given to this matter and for working diligently to implement these changes and clarify the conditions.

The ARA has, and will continue to work hard in developing and implementing industry standards. We feel that we have reached a point of making a significant difference by helping our clients to better understand the importance and value of this industry and the role their networks play in their financial well-being.

We firmly believe 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.

The American Recovery Association