American Recovery Association Urges Industry-Wide Action Against Municipal “Pay-to-Play” Repossession Ordinances

The American Recovery Association (ARA) is sounding the alarm: what started as a local issue in Illinois is now spreading to Michigan and Indiana and has escalated into a serious threat to the entire repossession industry. Several municipalities now require repossession companies to obtain permits—via online platforms such as Oxcart Permit Systems—simply to perform work they are already licensed, insured, and contracted to do. Fees range from $20 to $35 per recovery, with fines exceeding $1,000 for repeated violations.

Oxcart Overreach and Legal Concerns

The Oxcart system, originally designed for oversize and overweight vehicle permitting, is now being used to regulate repossessions. Municipalities using Oxcart often:

Restrict repossessions from private property, even though the Uniform Commercial Code (UCC) permits lawful repossession from private property.
Require written postings at recovery sites explaining why vehicles were removed, publicly sharing consumers’ personal information, violating privacy protections, and raising PPI concerns.
Mandate extensive pre- and post-repossession notifications to law enforcement, despite ICC regulations already allowing pre-reporting.
Force agents to stop blocks away from the repossession location to upload a photo of the recovered vehicle on the back of the truck—or face a $500 fine.

The photo upload requirement, in particular, creates substantial safety risks for agents. Forcing a recovery agent to stop shortly after a repossession—often in a charged, emotional environment—unnecessarily exposes them to confrontation and danger.

In 2023, an Illinois repossession agent was shot and killed after stopping to comply with ICC e-ticket requirements. This tragic loss underscores a sobering reality: every additional mandated stop, notification, or on-site administrative task increases risk. Compliance should never come at the cost of an agent’s life.

The result of these ordinances is clear: agents face excessive fines, small businesses absorb costs lenders cannot cover, and many agents are choosing to avoid these municipalities altogether—leaving lenders unable to recover collateral and creating service gaps that ultimately harm consumers and the industry alike.

The editorial that first highlighted this issue last October is now proving prescient. This is no longer a local challenge—it is a growing statewide and potentially national problem.

ARA Supports Local Advocacy

The Alliance of Illinois Repossessors (AIR) reports that, due to Oxcart’s overreach, fines imposed on agents have reached nearly $60,000 in just four small towns, causing many agents to stop performing repossessions in those areas. There appears to be little to no oversight, allowing municipalities to create and enforce their own rules. Enforcement efforts should be refocused on targeting bad actors who violate laws or industry standards, rather than penalizing fully licensed and compliant repossession companies.

AIR has taken decisive action. With financial support from Jeremiah Wheeler, President of DRN / MVTRAC / SCM, AIR has retained a lobbyist and is actively engaging industry partners, lawmakers, and municipal leaders to oppose these ordinances. The American Recovery Association fully supports AIR’s efforts—but this fight cannot be won alone. Lenders, agents, forwarders, state associations, and all industry partners must stand united to defend lawful repossession operations.

The Time to Act Is Now

Every day that passes without coordinated action makes these “pay-to-play” ordinances stronger, more entrenched, and more difficult to reverse. Silence or fragmented efforts only embolden additional municipalities to adopt similar policies.

ARA is calling on every stakeholder in the recovery ecosystem to stand together, speak up, and take action. Collaborate, support advocacy efforts, communicate with legislators, and join forces to protect our businesses, our clients, and the integrity of lawful repossession nationwide.

“The industry cannot afford to stand divided. Lenders, agents, forwarders, state associations, and every partner must unite immediately to defend lawful repossession operations. We cannot allow municipal overreach to jeopardize agent safety. Together, we will safeguard our right to operate fairly, safely, and sustainably,” said Todd Case, ARA President.

As stated in the previous editorial, this is not politics—it is survival. We must act now to stop this trend before it spreads further. Waiting will only increase fines, result in lost business, and create operational chaos affecting agents, lenders, and consumers alike.

To take immediate action or get involved in coordinated advocacy, contact:

American Recovery Association
[email protected]

Alliance of Illinois Repossessors
[email protected]

About the American Recovery Association (ARA):
The American Recovery Association is the world’s largest association dedicated to the advancement and professional development of the recovery and remarketing industry. ARA provides compliance support, education, and advocacy for hundreds of recovery professionals nationwide. ARA is the founder and host of 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.