ARA Key Committee Advances Efforts, Identifies Broader Transparency Concerns Across Industry

FOR IMMEDIATE RELEASE

DALLAS, TX (August 6, 2025) – The American Recovery Association (ARA) today announced new developments from its Key Committee, whose recent investigation into inconsistencies in key-related services has evolved into a broader industry-wide concern around transparency.

Originally focused on inconsistencies in key-related fees, the Committee’s work has revealed a deeper systemic issue affecting not only locksmithing services, but also the general structure of forwarder-agent relationships and the operational pressures tied to billing practices.

Through in-depth collaboration with repossession agents, forwarders, locksmiths, lenders, and compliance professionals, the Committee discovered troubling patterns, including a lack of transparency and increasingly coercive tactics directed at agents.

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Key Findings Include:

Unrealistic Fee Documentation Demands:
Certain forwarders now require detailed breakdowns of key service costs (labor, materials, code fees) — despite this information being difficult to track and often irrelevant to the core issues lenders seek to resolve.
Escalating Pressure on Agents:
Agents who question or challenge unclear practices are facing:
- Placement on Do Not Use (DNU) lists
- Demands to allow third-party key vendors onsite
- Threats to delay release of vehicles as leverage

“Only a handful of forwarders are using these aggressive tactics,” the Committee noted, “but their impact on the industry is outsized and harmful.”

ARA emphasizes that several forwarders have taken a collaborative stance, working with the organization to design functional and fair solutions. Their efforts are welcomed and critical to sustainable industry reform.

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Looking Forward: Broader Industry Advocacy

While the key issue remains a priority, the Committee acknowledges that meaningful reform requires addressing the broader environment that allows these transparency breakdowns to occur. Agents are expected to comply with inconsistent fee structures, perform additional labor, and absorb costs — often with no context or support.

The ARA Key Committee is advocating for:

Clear, upfront identification of key type before service
Tiered pricing models based on market realities
Practical and transparent audit practices
Professional treatment of agents as essential industry partners

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Additional Findings: Recovery Rate Suppression & Fee Shifting Tactics

The investigation also uncovered concerning behavior by certain forwarders manipulating billed line items to suppress recovery and storage rates — while encouraging agents to inflate other fees such as key charges or mileage.

Some forwarders have advised agents to “make it up on the key,” particularly in the post-COVID economic environment. Though the terminology has changed, the tactic persists under euphemisms like “total invoice average.”

This practice distorts actual service costs, undermines competitive fairness, delays payments, and opens the door for audit risks — especially for agents committed to honest billing.

“Hidden cost shifting is not a sustainable solution,” the Committee warned. “We need real, transparent pricing models that serve everyone — lenders, agents, and clients.”

In response, the ARA Key Committee is working in partnership with the ARA Client Relations Committee to craft operational and client-facing solutions. This integrated approach ensures that all stakeholders are part of the solution.

To get involved or provide input, contact the ARA Key Process Committee at:
📧 keys@americanrecoveryassn.org

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.