Update on ARA’s Meeting With CAC
American Recovery Association (ARA) exists to serve our members. We are committed to ensuring our members and those in our industry are heard, represented, and supported. Representatives from the ARA Board of Directors met with Credit Acceptance Corp. (CAC) on Friday, September 8th to discuss agents being held liable for transporters. We appreciate the time and effort the CAC team put forth assisting ARA in finding a resolution to this matter.
After meeting with CAC, your ARA representatives devised a solution to the problem agents have with the process of gaining access to their lots. We proposed having the auctions sign a site agreement contract that includes a hold-harmless clause for the agent if their subcontractors cause damage to property, persons, or themselves while on their property.
In addition, we proposed adding the agent as an additional insured to their insurance policy. This idea clearly aligns with how CAC currently contracts with forwarders.
We provided CAC with this suggestion, along with a sample site entry agreement to review – final agreements would be reviewed by ARA’s attorneys to ensure the legal language is precise and comprehensive to protect all parties involved. CAC reviewed our recommendations and sample agreement and responded with this:
“This was the first time we have been made aware of a transportation situation related to vehicle release requirements, we reviewed the situation and worked out a mutually agreeable solution with all parties involved. We will continue to review any future situations and work towards a mutually agreeable resolution with all parties involved.”
We believe our industry needs a policy in place to protect recovery agents, rather than simply addressing things on a case-by-case basis. To achieve this, there must be a transfer of risk at the contract level. We are confident that our recommendation will solve the problems with transporters at the lot level having to fulfill this requirement.
As always, we will keep our members and industry partners apprised as we move forward.
Sincerely,
Vaughn Clemmons
ARA President
ARA Meets with Credit Acceptance Corp. on Lot Access – ARA Meets with Credit Acceptance Corp. on Lot Access – ARA Meets with Credit Acceptance Corp. on Lot Access
ARA Meets with Credit Acceptance Corp. on Lot Access – American Recovery Association – ARA – Repossess – Repossession – Repossession Agency
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