The American Collector’s Association (ACA) announced on May 5th (see bullet point number two). Senator Elizabeth Warren and Senator Sherrod Brown introduced a second proposal asking for a ban on repossessions as well as pause all debt payments and accrued interest, late fees or other penalties for non-payment of debt. The Senators also propose to pause garnishments, evictions and utility disconnections.
Interesting enough they use the word “pause”, to minimize their intent which is to institute a national repossession ban. However, the ban would include all repossession activities. The unintended consequences of this measure would be a consumer who wants to voluntary surrender their vehicle cannot. A consumer who gets their vehicle impounded relies on the legal owner to retrieve it. The legal owner will not be able to retrieve it. When the car gets left at the tow yard it exposes the consumer to a higher deficiency balance, resulting in a total lien loss. The bottom line, either one of these situations will cost the consumer more money. This would enable individuals to move about with impunity. Even though the proposal doesn’t provide a time frame, other bills (S3565 and HR6379) suggest four to six months after the declaration of a National Disaster or State of Emergency has ended. You will not be able to work during any national disaster or state emergency and for a period of up to four to six months thereafter. In short you will become unemployed for the better half of a year. It is our intention to hire a Washington, D.C. lobbyist to bring these unintended consequences to the forefront. We need representation at the Capitol and on most state levels, without which nothing good is going to happen for the repossession industry.
On May 12, 2020 the HEROES Act was introduced as reported in CuCollector.com. The pages we are also concerned with are 1040-1045 in the 1815 page document.
Here is a real situation that took place in Pennsylvania. While attempting to keep repossession companies open, exemptions were filed with the Pennsylvania Department of Banking (PADOB) and the Department of Community and Economic Development (DCED). The DCED, however, issued closure orders to repossession agencies. These closures were relayed to David Kennedy. On May 8th when guidance finally came from DCED and the PADOB, it was stated this was the best PADOB could do given the political landscape. The Pennsylvania Independent Automobile Dealers Association (PIADA) and National Independent Automobile Dealers Association (NIADA) were able to strike their own deal with the legislature for greater freedoms than the PADOB could get us. Without a lobbyist we are at the mercy of other groups interests and politicians. Don’t get me wrong the PADOB tried but they can only push so far. We need to be in control of our story and not rely on anyone else.
We need a UNITED voice to press forward with this industry movement!
We have assembled a coalition of stakeholders who will be negatively impacted by impending federal legislation.
We have selected a Washington, D.C., lobbyist who has 30+ years of experience. She will set up meetings with legislators and their aides. These meetings will be crucial to prevent language that would negatively affect the repossession industry from being included in the Phase 4 Stimulus package.
Can you afford to not work for possibly 5 to 7 months whenever there is a state emergency or a national disaster?
We are fighting to prevent language that would create such a mandate in the Phase 4 Stimulus package. If we cannot prevent this language from being included in the stimulus package, we are fighting for the industry to receive a bailout for ALL company expenses including the paycheck protection plan.
We need your help! No one group is shouldering this burden. However, all groups, owners, employees working in this space need to champion this effort and promote this initiative to support our Industry.
We ask ALL involved in this Industry to consider contributing any amount of money you feel is appropriate. Whether it is $50, $250, $500, or higher, every dollar matters!
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