ARA Served Letter of Inquiry by Senator Warren

Requesting Detailed Information on Repossession Volumes, Error Rates, and Operational Practices

Washington DC – February 5, 2026 – Back in October we reported the record repossession volume data shared by Recovery Database Network (RDN). It took little time for the press to catch wind of it and the interview requests poured in. Well, now it caught the attention of at least one Senator, and she’s gone straight to the American Recovery Association (ARA) and lenders looking for answers.

Attracting Attention

Record high inflation, high interest rates and escalating auto prices and maintenance expenses have taken a toll on the public. Nowhere is this inability to keep up more evident than with the high delinquency rates and near record high repossession volume.

CNN, who first reported this story, used the Cox Automotive data of 1.7 million repossessions in 2024 as evidence of even then escalating repossession volume. Unfortunately, those numbers are mere estimates and not based on actual counted repossessions. According to previously reported RDN data, by the 3^rd quarter of 2025, there were a reported 2.2 million repossessions and 7.5 million assignments. By my estimates, this volume should have exceeded 3 million by year end.

Great for the repossession industry, but for the public, obviously not so much.

This surge has not gone unnoticed by the national and international press and the usual “ride along with a repo man” stories flourished as well as numerous quotes from industry leaders and agency owners from all over the country.

Now it has attracted regulatory scrutiny. On Wednesday, Senator Elizabeth Warren (D-MA), a member of the Senate Banking Committee, initiated an inquiry into auto lending practices, focusing specifically on wrongful and mistaken repossessions, cases where vehicles are recovered despite borrowers being current or having workout agreements in place.

Looking for Answers

Warren sent letters to a dozen major finance companies, including Chase Auto, GM Financial, Toyota Financial Services, and Ally Financial, requesting detailed information on repossession volumes, error rates, and operational practices. Responses are due by February 16th and are voluntary, as Democrats currently lack subpoena authority in the Senate Banking Committee.

In her letters, Warren described erroneous repossessions as “inexcusable” and highlighted their severe impact on borrowers’ lives and employment. She also criticized past reductions in Consumer Financial Protection Bureau (CFPB) enforcement capacity, noting the agency’s prior actions, such as the 2022 $1.7 billion penalty against Wells Fargo for improper repossessions, among other violations.

Industry representatives contacted by media outlets either declined comment or emphasized that repossession is always a last-resort measure. Ed McFadden, spokesperson for the American Financial Services Association (AFSA), stated that member companies “make every effort” to work with borrowers in distress and that “vehicle repossessions are a process of last resort that are in the interest of neither the borrower nor the lender.”

Market Drivers Supporting Continued Volume

Average new-vehicle transaction prices exceeded $50,000 for the first time last fall (Kelley Blue Book).
Average used-vehicle price listed at $26,043 in December, up nearly 3% year-over-year (Cox Automotive).
Financing rates remain elevated: 6.5% APR on new vehicles and 10.5% on used (Edmunds, December data).
Subprime 60-day delinquency rate hit 6.74% in December—the highest on record since the early 1990s (Fitch Ratings).

In the Spotlight

As always, recovery professionals should remain vigilant regarding compliance with state and federal guidelines, documentation requirements, and borrower communication protocols to minimize exposure to wrongful-repossession claims during this period of heightened regulatory and media attention.

The American Recovery Association, National Independent Auto Dealers Association, and AFSA were among the organizations contacted regarding the Warren inquiry; members are encouraged to monitor developments through their respective trade groups.

Todd Case, President of the ARA has confirmed receipt of Senator Warren’s letter and has only stated at this point that he is reviewing it and has yet to comment.

Judging solely on Senator Warrens posted quote “Car repossession is a devastating disruption to someone’s life – and it is inexcusable when that repossession is in error,”, it appears that she is insinuating some type of rise in conflation between wrongful repossessions rising because of a rise in repossessions.

As mentioned, Warren requested responses by February 16^th but due to the Democrats being the minority party in Senate, Warren has no subpoena power and responses will be voluntary.

Original Source: CNN

EDITORS NOTE: Just my two cents but it seems questionable to me why anyone would participate in this? This appears to be a rush to judgement, but in reality, who could prove this one way or the other? Standardized national repossession data does not exist.

Why should anyone spend their time and money responding to this if they do not have to. Words are weapons and the wrong words made while not under oath can come back to haunt you at a later time while under oath. Nothing good can come from it.