National Dealer Association Responds to Senate Repossession Probe

NIADA sends response to Senator Warren letter on automobile recoveries

NIADA sent its response Monday to Senate Committee on Banking, Housing and Urban Affairs Ranking Member Senator Elizabeth Warren on her request for data on auto recovery practices in the BHPH industry.

In early February, Warren sent letters to NIADA and several other associations, as well as auto lenders and dealers, requesting data and trends, along with information on practices and policies for auto recoveries for non-payments.

NIADA takes congressional inquiries seriously and makes every effort to respond accordingly. In this instance, NIADA informed the senator that it does not collect or maintain the specific requested data. NIADA also expressed its concern about releasing confidential business information of its members.

“NIADA would not have the authority to disclose these details even if they were available within our records,” said the letter.

NIADA addressed how dealers work with consumers to avoid the labor-intensive and costly auto recovery process.

“It is also a difficult and emotional experience for consumers that finance companies endeavor to avoid initiating whenever possible,” NIADA stated. “The idea that a recovery is an embedded or preferred outcome of the BHPH business model does not reflect the realities of legitimate BHPH operations. Recovery is typically pursued only after all reasonable efforts to help a customer remain current on payments have been exhausted, not as a profit-generating business strategy.”

NIADA works with its state affiliates to provide compliance information on state and federal regulations, in addition to education opportunities at the BHPH Dealer Forum, NIADA Convention and Expo, Certified Master Dealer program and webinars. NIADA serves as a continual resource to dealers on questions about federal and state compliance requirements.

“The association takes pride in setting the standard for the used car industry, and we will remain steadfast in this pursuit moving forward,” NIADA wrote.

About the NIADA

The National Independent Automobile Dealers Association (NIADA) has advanced independent automobile dealers since 1946 through advocacy, education and promotion.

Membership provides a multitude of opportunities and resources to enhance professional skills and maximize profitability. Simply leveraged, it’s a small investment that yields massive returns.

Join the tens of thousands of independent car dealers who are capitalizing on the advantages of membership.

Source: NIADA

Related:

ARA Served Letter of Inquiry by Senator Warren

AFSA – Setting the Repossession Records Straight

National Dealer Association Responds to Senate Repossession Probe – National Dealer Association Responds to Senate Repossession Probe – National Dealer Association Responds to Senate Repossession Probe

National Dealer Association Responds to Senate Repossession Probe – Repossess – Repossession – Repossession Agency – Repossessor – Repossession – Lending – Auto Loan – Subprime Auto Loans – Subprime Auto Loans