Last week, the ARA Board of Directors (BOD) met with leadership from CoPart to address concerns regarding their involvement in the repossession sector. Our primary issue centered on CoPart securing impounded vehicles on behalf of national lenders — vehicles that constitute repossessions.
While CoPart maintains that these units are merely tows or transports to auction, in reality any vehicle subject to an installment agreement and secured prior to the completion of that agreement is, by definition, a repossession. CoPart disagrees with this assessment.
ARA has long opposed the double standards that have plagued the recovery industry for decades, and this issue is yet another example of such discrepancies spreading rapidly. During our discussion, we learned that CoPart utilizes both employees and a network of subcontractors to facilitate these recoveries. However, repossession agents operating in this space must adhere to strict regulatory and insurance requirements, including explicit non-sub-contractor use to effect repossessions, workers compensation, repossession insurance, personal property protocols, and compliance with a host of industry standards and vetting of its agents. CoPart, under the claim that these recoveries are not repossessions, asserts that these same requirements do not apply to them.
CoPart representatives were clear in stating that they are a $5.5 billion publicly traded company with a primary focus on auction vehicles. However, if CoPart is engaging in the recovery of vehicles subject to installment loan agreements, they must be held to the same standards as any repossession agent across the country.
This is not a licensing issue. This matter is strictly about the nationwide requirements that all repossession agents must meet to legally and compliantly recover vehicles held by an installment loan agreement. If these requirements are deemed unnecessary in certain cases, then it is our position that no repossession agent across the country should be held to those standards.
ARA will continue to advocate for compliance within the repossession industry. We will not stand by as large corporations circumvent the regulations that protect both recovery agents, lenders, and consumers. We urge the lending sector to ensure that all entities recovering vehicles under installment agreements are held to the same professional and legal standards.
About American Recovery Association 
Originally chartered on July 22, 1965, and located in Dallas, Texas, American Recovery Association (ARA) is a membership organization made up of more than 260 repossession business owners providing service from more than 500 locations to more than 27,000 national and international cities. As the world’s largest association of recovery professionals, ARA strives to be a leader and advocate for the recovery industry by providing member support, education, and certifications; fostering relationships between the lending community and repossession agents; and hosting the annual three-day North American Repossessors Summit (NARS) — the largest repossession conference in the industry. For more information, go to repo.org or call (972) 755-4755.
Update from the ARA and CoPart Meeting – Update from the ARA and CoPart Meeting – Update from the ARA and CoPart Meeting
Update from the ARA and CoPart Meeting – American Recovery Association – ARA – NARS – North American Repossessors Summit – Repossess – Repossession – Repossession Agency – Repossessor
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