Clarification Secured on Condition Report Contract Language

Dear ARA Members,

ARA recently became aware of contractual language from a lender requiring condition reports be completed within 24 hours of a repossession. While the language itself is technically accurate, the expectation is operationally unrealistic. Recoveries that occur late in the week, on weekends, or during holidays would automatically fall out of compliance through no fault of the agent. Feedback from the agent community clearly reflects that this requirement is both confusing and unattainable in practice.

Although one might reasonably assume the lender intended “24 business hours,” that is not what the contract states. When ARA sought clarification, we were informed that despite the contractual wording, there should be no payment withholding or negative consequences for failing to meet this SLA when a unit is recovered on a weekend or holiday.

In addition to speaking with the lender, ARA also engaged with Loss Prevention Services (LPS), as they were the party that initially brought this strict interpretation to the attention of the agent community. We are pleased to report the updated requirement to: “Condition Reports must be submitted in RDN within 24 business hours.” This revised standard reflects a far more reasonable and achievable expectation. The lender and LPS were both receptive and eager to a practical solution. This is just one more example of partners working together for the greater good.

This matter was addressed promptly, with effective communication and strong collaboration among all parties to reach a practical, common-sense solution. ARA remains committed to ensuring all stakeholders understand the importance of precise language within contractual obligations. We will continue working to ensure such concerns are addressed, clarified, and corrected as necessary.

Stronger Together,

The ARA Board of Directors

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 education, compliance resources, and advocacy for hundreds of recovery professionals nationwide. It is also the host of the annual North American Repossessors Summit (NARS), the largest event in the industry.