ARS Takes the Next Step in Dedication to Repossession Safety

“It is the intent of this policy to promote the singular ideology that no collateral is ever worth a life or any risk of injury to our recovery agent partners, the customer, or a third party.”

Last month, Credit Acceptance Corporation (CAC) took a bold move to do what they could to help prevent violent and often deadly confrontations during repossessions by agreeing to pay full, involuntary repossession fees to agents for leaving the scene of a repo to avoid the potential for violence or physical confrontations. I asked who would step up next only to find myself pleasantly surprised that it wasn’t a lender but a forwarder.

Following a year of historic levels of death and tragedy in the field, the repossession industry has been working hard to develop support channels and strategies to combat this Every option was on the table and in consideration ranging from conflict avoidance training, body armor, cameras and in some areas, firearms. But the problem root lies in the fact that the repossession industry is by its nature inherently dangerous and the agents themselves are prone to taking greater risks than necessary.

Encouraging recovery agents to disengage dangerous confrontations and avoid breaches of peace is a cornerstone of repossession safety in the modern world. On April 18^th, Credit Acceptance Corporation (CAC) recognized this by offering to review situations where evidence of threat has merit, they would pay the agency the full involuntary repossession amount.

I congratulated their bold and noble move and inquired as to who would follow their lead and expected Chase, Ally, Santander of a large lender to see the virtue in this practice but was surprised that the next to step up was not a lender at all, but a forwarder.

Keep in mind, a forwarder represents multiple clients. Clients who have not made their commitment to agent safety. By adopting this bold and benevolent policy, they are taking it upon themselves. That is a huge investment to the safety of the repo industry, and it takes a company with a big heart to make such a gesture.

And that forwarder is American Recovery Service (ARS).

Below is their email broadcast from May 6^th.

American Recovery Service’s commitment to its agent partners has been shown throughout the years through its consistent drive to advocate on their behalf. This includes providing insight and education that highlights topics such as update standards, transport expediency, post-pandemic trends, reduced coverage areas, and consideration for appropriate increases to offset increased operating costs. These efforts have been an instrumental part of ARS’s drive to move the industry forward and keep it strong. Unfortunately, the most concerning trend that has continued to grow over time is the increase in potential repossession violence.

“The sheer nature of the business of repossessing collateral is inherently physical, highly technical, and can be met with safety concerns. Any number of risks could result from the actions of others, which, if not de-escalated, could result in harm to our field agent partners,” said Dave Baker, Chief Operations Officer of American Recovery Service.

ARS is proud to announce the immediate implementation of our Agent Safety Initiative policy. In the event an Agent is faced with a customer or third party actively protesting the repossession through means of any threat of potential violence, a physical confrontation, or any other condition where the Agent feels their physical safety or the safety of the customer or any third party may be at risk, the Agent must disengage the repossession to avoid any potential for violent confrontation.

Chief Executive Officer Dave Copeland stated: “It is the intent of this policy to promote the singular ideology that no collateral is ever worth a life or any risk of injury to our recovery agent partners, the customer, or a third party. We encourage field agents to put individual safety above all else.”

When properly reported to ARS, ARS will assess the totality of circumstances and engage in a good-faith effort in support of the agent to ensure that the repossession fee is paid in any situation where a repossession had to be stopped to avoid actual violence or perceived threats of violence.

As the first national servicing organization to formally implement this important program, it is our hope the industry as a whole will follow our lead and join us in setting an industry standard to support our agent partners in making the good work they do, safer for all.

This may come as a surprise to many because ARS doesn’t blow its own horn very much, but ARS has been quietly serving the repossession industry in as one of the biggest contributors to the Recovery Agents Benefit Fund. In addition, Dave Baker, their Chief Operations Officer, serves on the Board of Directors of the RABF.

I’ve beaten up on ARS in the past but ignored their dedication. I have erred and stand corrected. Mia culpa.

It was just a little over two weeks ago that we congratulated Credit Acceptance Corp. for being the first lender to adopt this practice and challenged the rest of the lending community to be a true partner and make the next move. Well, ARS stepped up to again to show they care and helped to establish the new baseline for agent safety.

So, we now have a subprime lender and a forwarder stepping up for safety. Who is next?

Kevin Armstrong

Publisher

Credit Acceptance Corp. Takes the Lead in Repossession Safety

State Associations Recognize Credit Acceptance Corporation’s Commitment to Agent Safety