AIR Now Rejecting Four Major Lenders and One Forwarder Over Storage

**“A.I.R expects this list to grow”**

PRESS RELEASE

On November 14^th of 2022, the Alliance of Illinois Repossessors issued a press release stating that on January 2^nd, 2023, their members, would start rejecting cases that do not provide a daily storage rate to be invoiced to help offset the escalating cost recovery companies accrue to safely store their units on their storage facilities in Illinois. That day has come.

As previously discussed, with rising insurance rates, and some of the highest property taxes in the country, we can no longer provide storage for free. An analysis done by members of our alliance, demonstrated that the average per unit cost for storage in Illinois is between $12.00-$14.00 per day, depending on monthly recovery volume.

We had requested, and received, data from Harding Brooks to further look into this issue. Their data disclosed that in 2022, as of that date, there were 254 claims filed for lot incidents, 118 of which were for theft, with a total of $1.6 million paid out.

These figures were for claims filed. Every member of the A.I.R has had incidents. Incidents that were not submitted as a claims, in fear of premiums rising above sustainable rates.

All this information brought us to the answer to the question; is free storage really free? We have for too long been accepting all of the risk with none of the reward. This cannot and will not continue.

Over the last thirty days we at the A.I.R have met with several lien holders and forwarders to discuss this issue. We, at the A.I.R presented comparable factual data reflecting each lien holders average time on lot and the cost agencies accrued to store these units.

While many of the discussions have been productive and continue, several have shown a complete lack of concern to the A.I.R member’s requests. Based upon these conversations, we, the members of the A.I.R have a compiled a list of these clients’ and their companies and will no longer be accepting repossession assignments from them.

To date, A.I.R members, have reported four large lenders and one forwarder from whom we will not be accepting cases from until further notice. Based upon our analysis of 2022 figures, A.I.R expects this list to grow from its members in the next couple weeks

About The Alliance of Illinois Repossessors

The Alliance of Illinois Repossessors is a gathering of Repossession companies that will unite for the progression of the repossession industry within our state. AIR is composed of licensed members operating repossession agencies with the State of Illinois. The purpose of this Association is to strengthen understanding between licensed Repossessors, law enforcement, financial institutions, regulatory agencies, and the consumer.