ARA Industry Message: The Truth About Key Fees and What Must Change

To Our Fellow Members, Agents, Lenders, and Forwarders,

It’s past time we had an honest conversation.

Our industry has weathered many storms—from unreasonable contract demands to stagnant recovery rates—but some of the greatest threats to our long-term sustainability aren’t coming from outside forces. They’re coming from within.

The current issues surrounding key invoicing abuse are a clear example. Whether it’s happening at one company or ten, the damage is being done to all of us. The lending community is frustrated. The forwarder community feels stuck in the middle. And the reputation of professional, integrity-driven agents, those who value relationships, transparency, and fair business practices is being dragged down with the rest.

Let’s be clear:
– It doesn’t matter if you aren’t the one inflating invoices.
– It doesn’t matter if it’s only happening in isolated pockets of the industry.

In the eyes of lenders and forwarders, we are all being lumped together. The trust we’ve worked so hard to build has been fractured and that trust is the foundation of every opportunity we have to grow our businesses.

For years, we’ve fought for fair invoicing. We demanded that lenders and forwarders allow us to recover our costs, especially on keys, which remain a legitimate, documented expense. But when that opportunity was finally granted, some abused it. And now, because of the actions of a few, all of us are being scrutinized, questioned, and in some cases, penalized.

I’ve heard the complaints loud and clear from within our own ranks. The frustration. The anger. The disbelief: “How dare a lender require us to break down our key fees?” But the reality is simple: this is happening because some in our industry abused the system. Just like we saw with flatbed and dolly fees, where a lack of ethical discipline led to a breakdown of trust, we now find ourselves once again in a position where our clients feel the need to treat us like we can’t be trusted.

Understanding the Economic Pressure Behind Key Pricing

While dishonest billing practices should never be tolerated, we also must acknowledge the broader economic reality that has contributed to inflated key fees.

For several years, repossession companies have operated under severely suppressed base rates. In 2025, some forwarders are still paying as little as $275 for involuntary repossessions a rate that has remained stagnant for over a decade, despite rising labor costs, insurance premiums, fuel prices, and compliance requirements.

At the same time, ancillary fees that once helped offset these rising costs, storage, personal property, redemption, and close fees have been eliminated or drastically reduced by many forwarders. These weren’t profit centers, but they helped agents operate sustainably.

When repossession companies raised the issue professionally, the industry’s quiet response was: “Make it up on the key.”

That message was clear; take the loss on core services and shift the profit burden onto keys. As a result, key invoices began to climb not always out of greed, but out of necessity. Many agents were simply trying to keep their businesses above water.

To make matters worse, some forwarders have added their own markups on key services stacking additional costs on top of agent invoices, sometimes close to doubling the total. In many cases, repossession companies are being blamed for prices they didn’t set due to a lack of transparency on the final invoice that the lender receives.

Let us be clear:

– We do not condone price gouging—by agents or by forwarders.
– We support fair, transparent compensation across all services—not just one.
– We believe in sustainable pricing that reflects real operational costs, not distorted workarounds.

If we want to restore trust, we must address both the symptom and the cause.

The Solution Isn’t Complicated, But It Requires Unity

We are our own worst enemy when we allow short-term greed or systemic suppression to jeopardize long-term opportunity. Unless we, as an industry, get in front of this issue openly, collectively, and decisively, the lending community will make the decisions for us, often through measures that, while well-intentioned, may ultimately serve neither their goals nor ours effectively.

Here’s what we must do:

– We need transparency — clear, consistent, and fair invoicing practices across the board, agents and forwarders alike.
– We need accountability — those abusing the system cannot be protected by silence, agents and forwarders alike.
– We need collaboration — agents, forwarders, and lenders working together to restore credibility.

The American Recovery Association is committed to leading that conversation but we cannot do it alone. Every agent who values this profession, every agency that understands the power of long-term relationships, needs to lean in.

In direct response to this call to action, ARA has created a dedicated Key Services Committee and is actively coordinating with both state and national associations to drive sustainable, industry-wide solutions. We’ve already heard from forwarders, lenders, and repossession professionals alike who are looking for structure, clarity, and fairness when it comes to key service practices and we want to make it clear: ARA is where that conversation should happen.

We encourage anyone, especially lenders or forwarders who are struggling with their key processes or vendor invoicing structures, to reach out and become part of this coordinated solution, rather than attempting to build isolated or reactionary models that may not serve the industry long-term.

Please contact Marcus Potter, ARA’s Director of Client Relations, at clientrelations@americanrecoveryassn.org or reach out directly to Todd Case and John Kimbrell, at technology@americanrecoveryassn.org ARA’s Director and Co-Chair of the Key Services Committee, to join this unified effort.

Together, we can rebuild trust and shape a more effective, fair, and transparent approach for our entire industry.

A Final Thought: Zero Tolerance Must Apply to Everyone

ARA strongly recommends that lenders and forwarders take proactive steps to identify and eliminate bad actors regardless of whether they are on the recovery or forwarding side of the equation. The continued presence of those who lack the moral fortitude to do the right thing poisons the well for everyone.

Removing them sends a clear message:
There is zero tolerance for dishonest practices, inflated invoicing, or behavior that erodes the trust this industry depends on.

We cannot afford to turn a blind eye, not as agents, not as forwarders, and certainly not as lenders.

When integrity is compromised, everyone loses. It’s time for this industry to draw the line.