FOR IMMEDIATE RELEASE
The members of Eagle Group XX have once again taken the lead to develop and publish “Asset Recovery Industry Standards” related to the current atmosphere of the delayed payment and non-payment of fees and reimbursements due repossession agencies. Noting and addressing the unfair and abusive acts reported by asset recovery agencies such as refusal to pay because the bill did not meet unfair dating demands, refusal to pay based on micro-technical violations of contractual terms and payments delayed while still requiring agents to work accounts and release recovered vehicles, has become a prime cause for investigation and action by the members of Eagle Group XX.
To specifically address these and other issues a meeting was held on February 27, 2020 with the 20 Group members participating and providing input. The “Industry Remittance Issues” were discussed as it appeared that the flow of funds from lenders to assigning entities such as some of the forwarding agencies was not reaching the recovery agencies who had performed the repossession of the mortgaged collateral.
It was apparent from the discussion that there were no set “Industry Standards” related to these issues and therefore the members of Eagle Group XX felt the first step in the process to insure fairness would be the task of developing and publishing “Industry Standards” which would be equitable to lenders, forwarders and the recovery agencies.
The first and primary question discussed was, “What is a fair and equitable time to expect remittance from a client when an assignment has been completed?”. After careful deliberation where numerous members gave their input regarding remittance expectations and the examination of the policies set by other industries the following was the conclusion reached by the members of Eagle Group XX:
“The acceptable and recognized “INDUSTRY STANDARD TERM OF REMITTANCE” for the ASSET RECOVERY INDUSTRY is established to be 35 days from date of final billing.”
The next item discussed was what should the “Asset Recovery Industry Standard” be for considering when a billing would be considered “Delinquent”. Again, after much input from the Eagle Group XX members and careful examination of the standards set by other business entities in the lending industry the following conclusion was reached:
“The acceptable and recognized “INDUSTRY STANDARD DATE OF DELINQUENCY” for the ASSET RECOVERY INDUSTRY is established to be 65 days from date of final billing.”
Following the setting of the “Industry Standard Date of Delinquency” the discussion turned to deciding on an “Industry Standard Cash on Release Date”. Clearly put, at what date would the recovery agency cease to release vehicles without being paid for the vehicle being released. In the discussion it was made very clear that “Holding Vehicles for Total Indebtedness” was not the accepted procedure but rather just demanding that the money owed on the vehicle being released be paid prior to releasing that vehicle. After members gave their thoughts and input, and after very careful deliberation regarding this COR issue the following was the conclusion reached by the members of Eagle Group XX:
“An “INDUSTRY STANDARD CASH ON RELEASE DATE” is established to be 65 days from the date of final billing with a 10 Day COR Notice Requirement to the client.”
The final act of the members of Eagle Group XX members was the discussion and formation of an Eagle Group XX/USA Data Information Exchange (DIE) with access limited to Eagle Group XX/USA members. This closed Data Information Exchange would be established and maintained to contain and provide members of Eagle Group XX/USA information on clients who are 65 days or more past due in remitting fees as well as clients who are making unfair and abusive demands on the members of Eagle Group XX/USA.
Member agencies would have the ability to add, delete and update client information as well as enter comments through the Data Information Exchange (DIE) program. A sub section of the DIE program would contain direct and current contact information with the person(s) involved in expediting payment of past due invoices.
For more information regarding Eagle Group XX and Eagle Group USA no cost industry accepted training and credentialing programs or membership contact Ron Brown at RBrown@CSI-ARM.com or 800-411-1844
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