A Call to Action: It’s Time for Lien Holders to Implement Standard Annual Rate Increases…

…and Ensure Forwarders are Included so They Have the Ability to Pass Them On.

GUEST EDITORIAL

The repossession industry is facing mounting pressures—rising fuel costs, higher insurance premiums, increased compliance demands, and ongoing labor shortages. Despite these challenges, many agencies are still working under outdated fee structures that haven’t kept pace with inflation or operational realities.

It’s time for a change.

We are calling on lien holders to implement a standardized annual rate increase of 2% to 3% for repossession services, effective on the anniversary of each agreement. This simple adjustment ensures that service providers can continue to operate efficiently, compliantly, and safely in today’s economic climate.

But this cannot stop at the lien holder level.

We urge lien holders to also work with their forwarders to ensure these annual increases are included so that they can also adjust their rates Without this critical step, agencies are left to shoulder rising costs without the support they need—ultimately threatening the quality and availability of recovery services across the country.

This isn’t about renegotiating contracts every year. This is about creating a sustainable, industry-wide standard that eliminates the need for annual rate discussions and helps protect the long-term viability of the repossession network.

Here’s what needs to happen:

Lien holders adopt a 2%–3% annual rate increase policy across all recovery contracts.
Forwarders are instructed to incorporate and pass through these increases to the agencies.

Agencies can focus on delivering quality service, instead of negotiating for fair compensation year after year.

The repossession industry is a vital part of the financial ecosystem, and it deserves pricing structures that reflect the risks and realities on the ground.

We encourage all lien holders to take this step today—and lead the way toward a stronger, more sustainable industry tomorrow.

Lauren Kimbrell

And

Dom Clegg