On May 1, 2020, Legislative Liaison to the California Association of Licensed Repossessors (CALR), Joe Collins, penned “The McClellan Brief”, which is a brief legal opinion on the threats posed to the repossession industry by the pending Federal legislation in Washington DC., HR 6379 and S. 3565. In the brief, Collins’ spells out his concerns in detail expanding beyond the simple 180-day moratoriums to creating a clearer understanding of how this is expanded by their insertion of the “Stafford Act.”
In Collins’ opinion, this would utterly destroy the repossession industry by placing a moratorium on all collection and repossession activities for a minimum of 5 to 7 months.
While a number of states, and now cities, continue to issue collections and repossession moratoriums in an expanding and unvalidatable patchwork of regulations, the impending threat of Federal legislation evidenced in HR 6379 and S. 3565 threaten to cripple the US credit environment while simultaneously killing the repossession industry. Although these bills seem unfathomable, they are indeed genuine ideological standards of the Democratic controlled house, who have reportedly been completely unwilling to even discuss with one lobbyist who was a longtime staff member.
Last week, and will continue to be a larger conversation this week. as the ARA, AFA, RSIG, Eagle XX Group, Harding Brooks Insurance Agency and all of the state level recovery associations will reconvene to make a decision.
While it is of some opinions that the ACA and ABA lobbyists may be better equipped and funded to represent the industry indirectly, it is in the other opinions that there may be similar interests that they would not represent in a manner in the best interest of the repossession industry and that this is far too important to not address head on.
Note: I had made an error in omitting the Eagle XX Group from the initial post of this editorial and would like to apologize to my old friend Ron Brown and all of the members of the Eagle XX Group. I have updated this article to address the error. Mia culpa. – Kevin
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