Santander/Chrysler Capital- We Need to Talk

State Repo Associations Statement on Santander/Chrysler Capital Flatbed Fees Cost Cutting

On behalf of the State Repossession Associations, we appreciate what Santander / Chrysler Capital has done with the recent absorption of MBSI fees in an attempt to reduce costs on the agent level. As one of the largest lenders in the nation, you can set the pace and pave the road for other lenders. That being said, we were surprised to see that Santander / Chrysler Capital decided to reduce the industry standard $150 flatbed fee / dolly fee to $110, and we are asking for Santander / Chrysler Capital to reconsider its decision.

Read the Santander / Chrysler Capital Letter Here

This reduction in fees comes at a time when the majority of the vehicles being manufactured and sold are 4×4, AWD, and or electric vehicles that require the use of a flatbed or dollies to properly tow these vehicles. Also, many vehicles on the road today have electric e-brakes that are engaged once the vehicle is shut off, requiring a flatbed or dollies.

In addition, this is not standard equipment. When a truck is ordered, dollies are considered a $3,000-$3,500 add-on and require special mounts to also be installed on the truck, not to mention the monthly maintenance and care to keep them operational.

Once equipped with this equipment, due to its weight and size, the agents must be trained on the proper handling and use to avoid potential injuries and damages. Nationally, many repossession companies have fewer flatbeds, primarily due to 20% higher purchase price, higher fuel and maintenance costs, and specialized training required for their use.

In case you need to understand more, please read; “Why do Flatbed Tows Cost So Much?”

We understand that the repossession industry is under much scrutiny, however there is a cost of doing business the legal and compliant way. The $150 flatbed / dolly fee merely assisted in this expense and was never considered full compensation for this service.

Reducing the rate to $110 makes these services less cost-effective and feasible for recovery companies, thus adding to the financial burden placed on the industry at the agent level. In addition, you are now requiring a photograph of the unit on a flatbed / dollies to be uploaded in order to get paid. This process is time consuming and not ideal for agents in the field. Unfortunately, these changes will impact the sustainability of recovery companies causing there to be less agents to secure your collateral.

We would like to have a productive conversation within the next 10 days regarding this matter, and we are willing to provide our supporting metrics. We are confident, that together, we can work towards a solution that is beneficial for both sides. If you would like to have a conversation, please respond to statesrepo@gmail.com. We look forward to hearing from you.

Sincerely,

Alliance of Illinois Repossessors– President, Santino Datoli

Florida Association of Licensed Repossessors – President, Suzanne Chartier Burns

Georgia Association of Licensed Repossessors – President, John Newberry

Indiana Professional Repossessors Association – President, Todd Case

Michigan Association of Repossession Agencies – President, Jenny Liagre

Minnesota Association of Repossession Professionals – President, Kayihan Seran

Nevada Association of Licensed Repossessors – President, Mark Zane

New York Professional Repossessors Association – President, Salvatore LoDico

Ohio Association of Repossessors – President, Amy Bednar

Oklahoma Association of Professional Repossessors – Lisa Hancock President

Pennsylvania Repossession Association – President Jeremy Cross