PLEASE READ! Important Information Regarding the ARA and ICRA

The Illinois Collateral Recovery Act and ARA’s Role in Guiding Illinois Members

The Illinois Collateral Recovery Act (ICRA) took effect yesterday, January 1, 2024, and we want to bring clarity to ARA’s role and function as it pertains to the new legislation.

As stated in prior communications, ARA played no role in writing the legislation and was unknowingly named in the ICRA – which has caused some confusion within our industry.

ARA supports a free market and is unable to endorse any specific provider; however, ARA provides criteria for “A Standardized Electronic Solution” to follow in order for the repossession company to select a data solutions provider. ARA cannot and will not select the provider on the member’s behalf, but if a provider meets 3 simple criteria (see below), the provider is considered “approved” by ARA. It is the responsibility of the repossession business or professional to choose the data solutions provider and ensure the provider meets these criteria.

The approval criteria provided by ARA is listed below (along with the entire communication previously sent to the industry).

We support the Alliance of Illinois Repossessors (A.I.R.) and their efforts to provide guidance and direction to Illinois-licensed recovery agencies. If you are an Illinois-licensed recovery agency and have additional questions, please email the A.I.R. directly at allianceofilrepo@gmail.com .

A Standardized Electronic Solution” Approval Criteria

The Illinois legislature has codified a further requirement that repossession professionals employ a “standardized electronic solution” to “clear, erase, delete, or otherwise eliminate … personal information” from vehicles in the course of the repossession process. That solution further must be “approved by the American Recovery Association.”

For purposes of this newly enacted requirement of the Illinois Collateral Recovery Act only, the ARA considers a “standardized electronic solution” in this context to be “approved” if the vendor that provides the “electronic solution” (the “solution”) satisfies the following:

The vendor can demonstrate the capability of the solution to “clear, erase, delete, or otherwise eliminate the personal information collected or stored in or by the vehicle” (collectively the “information removal”) by electronic means that is both repeatable and verifiable;
The solution documents the time, date, and location of the information removal in a form that the repossession professional can retain as confirmation of the successful information removal, or, in the event of an attempted, but unsuccessful, information removal, confirming the repossession professional’s attempted information removal; and
The vendor is licensed to do business in the State of Illinois and is insured.

Further Considerations for Illinois Repossession Professionals

The ARA is taking great care not to interfere with businesses’ freedom of choice, and to avoid taking any control of the marketplace for vendors and other service providers within the automotive and professional repossession ecosystem.

This statement, including the criteria set forth above, is designed to allow business to proceed in an open market, while providing Illinois repossession professionals an objective means by which to obtain compliance with the Illinois Collateral Recovery Act come January 1, 2024.

What this statement is not:

A recommendation of, or voucher for, any particular vendor, company, or business, standing alone or in comparison to any other;
Legal advice; or
A guarantee of performance or suitability of any solution.

Notice from the American Recovery Association Regarding the Data Privacy Amendment to the Illinois Collateral Recovery Act, 225 ILCS 422 et seq.

New Requirements for Personal Property Stored in Vehicles

Earlier this year, the Illinois legislature passed, and the governor signed into law on July 28th, an amendment to the Illinois Collateral Recovery Act impacting the professional repossession industry in several ways. Please note, new requirements for the handling of personal information stored by vehicles will go into effect January 1, 2024.

As of that date, the Act, as amended, will specifically provide on this point:

If a licensed repossession agency has cause to believe that a vehicle that serves as collateral collects or stores personal information, as defined under Section 10, then, as soon as practicable upon repossession of the vehicle and prior to the release of the vehicle from the possession of the licensed repossession agency, the licensed repossession agency shall clear, erase, delete, or otherwise eliminate the personal information collected or stored in or by the vehicle by utilizing a standardized electronic solution that has been approved by the American Recovery Association.

225 ILCS 422/110, subdiv. (f).

The Act will define “personal information” to mean:

“Personal information” means information that is associated with an owner, driver, or passenger of the collateral and that is collected and stored by electronic means or systems in or by the collateral during the course of its use, including, but not limited to: (i) biometric information, as defined by the Biometric Information Privacy Act, contacts, addresses, telephone numbers, garage door codes, map data, and digital subscriptions; (ii) information that is deemed “sensitive personal information” by the Federal Trade Commission, “personally identifiable information” under federal law or the Personal Information Protection Act, or “individually identifiable health information” under the federal Health Insurance Portability and Accountability Act; and (iii) information that a licensed repossession agency reasonably believes would be deemed confidential or private by the person who is associated with the information.

225 ILCS 422/10.

A Standardized Electronic Solution” Approval Criteria

For purposes of this newly enacted requirement of the Illinois Collateral Recovery Act only, the ARA considers a “standardized electronic solution” in this context to be “approved” if the vendor that provides the “electronic solution” (the “solution”) satisfies the following:

The vendor can demonstrate the capability of the solution to “clear, erase, delete, or otherwise eliminate the personal information collected or stored in or by the vehicle” (collectively the “information removal”) by electronic means that is both repeatable and verifiable;
The solution documents the time, date, and location of the information removal in a form that the repossession professional can retain as confirmation of the successful information removal, or, in the event of an attempted, but unsuccessful, information removal, confirming the repossession professional’s attempted information removal; and
The vendor is licensed to do business in the State of Illinois and is insured.

Further Considerations for Illinois Repossession Professionals

What this statement is not:

A recommendation of, or voucher for, any particular vendor, company, or business, standing alone or in comparison to any other;
Legal advice; or
A guarantee of performance or suitability of any solution.

About American Recovery Association

Originally chartered on July 22, 1965, and located in Dallas, Texas, American Recovery Association (ARA) is a membership organization made up of more than 260 repossession business owners providing service from more than 500 locations to more than 27,000 national and international cities. As the world’s largest association of recovery professionals, ARA strives to be a leader and advocate for the recovery industry by providing member support, education, and certifications; fostering relationships between the lending community and repossession agents; and hosting the North American Repossessors Summit (NARS), an annual two-day summit – the largest repossession conference in the industry. For more information, go to repo.org or call (972) 755-4755.