The ARA Cancels Privacy Partner Relationship

As the end of 2023 came to an end, the American Recovery Association (ARA) announced the termination of their partnership with a company that had become a focal point of criticism of the new Illinois Collateral Recovery Act that went into effect on January 1^st.

In July of 2021, the ARA announced their partnership with Privacy4Cars, a Georgia based technology company focused on identifying and resolving data privacy issues across the automotive ecosystem, to offer a suite of privacy, safety, security, and compliance services for its clients.

The ARA had initially chosen Privacy4Cars to serve as their preferred partner to address concerns with the personal data stored in the electronic systems of repossessed automobiles.

Things took in an interesting turn August of 2023, when the Alliance of Illinois Repossessors (AIR) succeeded in passing a revision to the Illinois Collateral Recovery Act regarding personal property to include digital data. SB0800, titled the Consumer Data Removal Act, the country’s first law related to consumer data protection regarding the management of repossessed vehicles.

While initially applauded by the Allied Finance Adjusters (AFA), the final bill drew their concern over a specific line in the bill. That required; “that every repossession business in the state would have to utilize “a standardized electronic solution that has been approved by the American Recovery Association…”

This specific statement brought to issue the availability of access and choice by the AFA in their September editorial titled “AFA Critique of New ARA Legislation.”

While many misgivings were stated, perhaps most in question was the American Recovery Association “partnership” with Privacy4Cars. Their being the only ARA approved provider brought to question the availability of this service for a competitor that is not a “partner” with ARA to be approved by them.

On December 29^th, while not elaborating on the reasoning for terminating their partnership with Privacy4Cars, the American Recovery Association (ARA) distributed the following announcement.

ARA’s Partnership With Privacy4Cars

Dear Members,

On July 28, 2021, ARA announced a strategic partnership with Privacy4Cars in recognition of the increasing compliance risks presented by consumer PII data stored in vehicles. We appreciate Privacy4Cars’ partnership.

Effective immediately, ARA will no longer offer a licensing program for a PII data removal software system, through Privacy4Cars or any other vendor. This is based solely on internal Association decisions and not out of concern for Privacy4Cars’ product, or any other vendor’s product.

ARA remains committed to consumer-facing compliance and data security initiatives. We encourage members to consider their vendor needs in this regard and, if appropriate, contract directly with their vendor of choice.

Thank you,

Vaughn Clemmons

President –

Considering that the Illinois data privacy law specifically stated that the ARA’s preferred standardized electronic solution was the states new required method for data removal from repossessed vehicles, it appears as though the method of choice is wide open until legal opinion is released for clarification.