As the repossession industry muddles through these contradictory and unprecedented times, we are quickly watching the destruction of an economic system that not only does this industry depend upon, but the entire nation. Stuck between the definitions of “Essential” and “Non-essential” and the emotionally charged and irrational moratoriums placed at the state levels prohibiting repossession activities, the industry faces an even larger threat at the federal level and is seriously lacking a voice in the room to help them understand the bigger picture of what a critical part to the sustainability of the financial services sector self-help repossession is. This is why you are all needed to join the industry together as one tomorrow, May 1st.
While a frequently echoed sentiment of the repossession industry being too small of an segment of the financial services sector is argued as a reason to not even try, it is worthy of mentioning that in a recent survey conducted by the American Recovery Association, they received 560 responses from agency owners representing nearly 20,000 employees in over 400 of the total 435 congressional districts. That places a large number of voices within the vast majority of congressional seats that need to be made to understand the bigger picture to the place that the repossession industry serves in providing “sustainable” financial services to the American public.
Without repossessions, loan losses would swell to massive proportions during the declared pandemic period and once removed, would cause a tsunami of repossession volume and would follow an avalanche of bankruptcies that would create record loan losses at the lender level. This tsunami of repossessions would follow with massive depreciation in used wholesale auto values furthering the financial damage to the lenders and causing a tightening of credit underwriting guidelines, interest rates and the closure of some subprime lenders who, for many that these well intentioned bills and moratoriums are intended to protect, would no longer have access to when they need them in the foreseeable future.
While most in the repossession industry see these moratoriums solely for how their companies and themselves are impacted, it is now critical that everyone understand that this is actually bigger than just ourselves. These acts endanger the entire credit cycle, which accounts for nearly 70% of all financial transactions in our nation. This is about the American economy for the future to come and the survival of our nation itself.
In order to spread this message, all voices in the industry need to come together as one and spread it through every political contact possible including the potential hiring of an experienced lobbyist to represent the industry and assure that every possible effort is made to put a stop to these irrational and destructive pieces of legislation being passed around, not just now, but in the future!
Tomorrow, May 1st at 8am EST, 11am PST, the American Recovery Association is hosting what may be the most important meeting that the repossession industry has ever had, the Nationwide Webinar on Developing a Sustainable Business Model. In this meeting, the ARA will be presenting a large number of proposed set industry standards to be voted for or against by all attendees;
- Contract terms
- Legal violations
- Service fees
- and more…
Your participation in this vote is critical. You can’t complain if you don’t vote. It is critical that every company, employee and the entire repossession industry that you all come together now!
I urge you all, every single employee in all corners of the industry, to join in this webinar and hear what is proposed and share your opinions. The future depends upon you.
Friday, May 1st at 1:00 p.m. CST
Facebook Comments