It’s True…Because It’s True

GUEST EDITORIAL

When considering solutions to industry-related challenges, we must first ask the right questions. Recently during an ARA zoom discussion (Feb 2024) I was referred to as “old school” by a very well-respected recovery agency owner. Of course, I had an idea of what it meant, but I wanted to know for sure, in these “trending” times what it meant to be called “old school,” so I looked it up.

A google search of the phrase old school shows “Old school means something close to old-fashioned, but it is a term with more pride behind it.” If someone says, “you’re old school,” they’re saying you do it like it used to be done, which you believe was a better way.”

I agree with the Googles definition of “old school.” I will accept being called “old school” because how we managed our businesses in the past was a better way. It was better because we did not let the client dictate our company policies. We created and managed our company procedures and yes, we set our fees. If the client did not agree to our fees, the client simply called the other guy. (emphasis on simply).

The subject of the ARA Zoom was about the cost of verifying and/or accessing real time license plate information on repossession assignments. The primary talking point during the ARA zoom was the fact that repossession agencies are paying thousands of dollars per month to data brokers or State DMV’s for up-to-date license plate information, and how those cost could be converted to safety policies and procedures.

What lead to me being referred to as “old school” was when I asked the question, “try this simple solution, why don’t you just tell the client or forwarder that you will not accept the assignment if the up-to-date tag info is not included with the repossession assignment?” This forces the client to absorb the charges affiliated with obtaining real time license plate information. It is a simple solution.

At the top of this page, I write, “we must first ask the right question” I thought, and I absolutely believe, during the ARA Zoom, I had asked the right question, and the second part of my question was my comment was, “I can’t believe the recovery agent owner does not have the guts to manage their own company policy on repossession fees.”

My comment was meant to be a slight nudge on the shoulder of the agency owner, to stop the clients and forwarders from setting the repossession fee and fees charged for ancillary services. If I hurt your feelings by saying this, toughen up cupcake. You are in the repossession business; you are not a Starbucks employee.

My old school solution is not so old school at all, and the reader should not take offense when I refer to the solution as “simple,” but as much as I do not want to quote that guy from California, in his words, “Its true…because it’s true.”

Clients and repossession assignment forwarders will never take on any additional cost until their repossession vendor challenges them. The challenge will be to deny the repossession assignment until real time license plate information is included with the recovery assignment. With this said, emphasis must be placed on the term real-time license plate data. Old license plate information, even information that is just a week old creates challenges. There are many examples of a lienholder losing his rights to a vehicle because the mechanical or storage liens is voided or transferred.

One must consider how many wrongful repossession lawsuits have been filed in the last few years because of liens becoming invalid and the lienholder failed to take notice of a certified mail notification.

Clients who provide your company with up to date, quality information are valued clients. Clients who do not are a waste of valuable time and resources. Allowing a bad client to go elsewhere for their recovery needs may be the best decision you could make. Why not let the client waste the time of your competitor?

ARA President Vaughn Clemons said it best, “sometimes less is more.” I agree.

When recovery agency owners stop letting clients and forwarders manage their businesses, then repossessing collateral will again become a profitable business, as it was “back in the day.”

Mark Lacek, an old school guy.