What is the AFA doing for the State Associations? Here’s what!

AFA Editorial

Hardly a month goes by that I don’t hear someone ask (normally in an accusatory manner), “What has Allied Finance Adjustors done for their members?” or, “What are they doing within the repossession industry?” The most recent commentary came in the form of a negative comment on a social media thread in response to an unrelated AFA article, in which a very vocal individual posed a likewise accusatory question of: What is Allied Finance Adjusters doing for the newly-forming State Repo associations in support of their movement to address the current real crisis of free storage?

Well, the answer is straightforward: as we always have, supported this industry in many ways, including opposing those businesses or forwarding companies that are directly responsible for the low-pay, predatory contracts and any number of invasive items including low fees designed to destroy the repossession industry.

Allied does not allow forwarding company representatives at our conventions to wine and dine what was once was one of your direct clients. Our conventions don’t display the name of a forwarder that sponsored the evening dinner on the backs of the chairs we sit in.

You will never see a vendor at our convention whose sole intent is to solicit your clients. THIS IS WHAT WE DO FOR OUR MEMBERS. This is what we do for the state associations that are beginning to fight back against the forwarding concept and their practices.

There is probably no clearer visible differentiation between Allied Finance Adjusters and other associations. Other groups that extoll themselves as leaders of the industry advocating for the state associations to fight for better fees and conditions all the while soliciting funds and sponsorships from some of the very forwarding companies who have been guilty of skimming fees and making millions on the backs of hard-working repo agencies.

All of Allied’s conferences and meetings are solely funded by our vendors support and our members’ dues. Our dedication is, and will always be, to our members and not to raise income through forwarders at the expense of our members. Least of all, at the expense of our core values. Our valued members are some of the most professional, highly trained individuals in the industry and we as Allied are proud to represent.

Allied Finance Adjusters has made it no secret over many years that we support the efforts of all State Associations. Allied publishes all active state association logos along with state association news in the Professional Repossessor Magazine which is owned by Allied Finance Adjusters. The Professional Repossessor Magazine goes out to members and lenders all over the country.

Allied just recently happily and proudly added the new (AIR) Alliance of Illinois Repossessors logo to our publications. Over the years, Allied’s commitment to the state association concept has prompted us to aid in the startup of new associations.

We offer all state associations recognized by Allied the use Allied Finance Adjusters own proprietary management software and free advertising in the magazine. We offer guidance from our own staff attorney for our members who start new associations. We also offer all our members free compliance training along with the necessary documents to meet their client’s needs.

It seems to be obvious, and oddly hypocritical, to claim earnest support of the state associations and the repossession industry with their fight against unfair fee conditions, when year after year an association becomes more and more intertwined with the very forwarding companies that Allied and the state associations fight against. As an association you can not have it both ways.

While speaking with Sonny Datoli, owner of Armor Recovery, one of the founders of the newly formed Alliance of Illinois Repossessors, along with Dave Johns Jr., Done-Rite Recovery, and Ryan Miller representing Northwest Repossession, LLC (all representatives of AIR), I told them that I was proud to support their efforts as an Illinois repo company owner and I pledged my support as Allied’s President.

I commended them on their efforts in bringing other state associations on board to call out the injustices that the forwarding concept has brought to the repossession industry.

The mere fact that they were able to get some of the forwarders to come to the table was a great accomplishment in its self. In a recent article, the Alliance of Illinois Repossessors also pointed out that some of the lenders are paying out spiffs or bonuses to the forwarding companies.

They pointed out that the forwarders are collecting storage fees from the lenders and are being paid sometimes well over a $1000 for the repossession and the agents who do actually the repossession work, carry the insurance, pay for the equipment and buildings and pay the agents get a very small portion of the proceeds most of the time as little as $275.00.

The fact that the forwarders are charging the inflated fees could possibly explain the recent CFPBs recent decision that Forwarding fees if interpreted correctly could be a UDAPP violation. The CFPB has determined that if the borrowers are paying $1000 for a repossession fee and the actual cost was $350 that caused or could likely cause substantial injury in the form of concrete monetary harm. The examiners went as far as to say that estimated repossession fees charged for repossession forwarding were identified as UDAAPS.

I caution everyone as to declaring victory yet however this is a rite step in the direction the AIR and other associations are going for. I also went on to commend the Alliance in their efforts to gain a more transparent relationship between the forwarder and the agents they hire.

With all this going on my thoughts went to, “How is it going to play out when the state associations start fighting for the fees they deserve in order to survive and their self-proclaimed benefactor (not AFA) that thrives on the forwarding industry ends up have to choose whether to support the state associations and their fight for increasing the repo fees, and that they claim so publicly to support, or the revenue source that they depend on?”

Will they help the states negotiate for higher compensation risking their relationships with the forwarders or will they jump on board and help bring our industry back risking their own compensation for putting clients, agents and forwarders in the same room?

Fantasy within itself

I understand that there is an annual golf event being held (fittingly) next to Walt Disney World this year. This event is often heavily attended by the very forwarding companies that are bankrupting repossession companies across the nation, it is an event they participate in using the same ill-gotten money they support the associations conference with.

I find it hard to believe that they are asking the same repo company owners they under pay to spend money to play golf with them! I must admit it’s a great strategy and it appears to be working. I remember someone else who got individuals to drink the Kool Aid.

I find it humorous that the proximity of one of this year’s repossession conferences is in Florida at Disney, the home of Fantasyland. The sad fantasy appears to be that the event is being held up as ‘for the benefit of the repossession industry’.

But I suppose it all depends on your definition of who is “the repossession industry”. When I speak of the ‘repo industry’, I speak of the agency owners, their employees, and their families that rely on the company’s income to survive. I speak of the state associations that have taken up the good fight.

This does not include the forwarders or those responsible for the ever-increasing decline in our income. Others seem to have a very different view of who the real “repossession industry” is. Their view appears to include the forwarding companies. Their quest for the forwarders’ money and the vendor/ forwarder sponsorship betrays every hard working “repossession industry” professional.

Moving Forward

At this years Allied Finance Adjusters Conference being held in Detroit, Michigan from the 20^th to the 23^rd of June, we will be proudly showing our support for all the state associations.

One exciting way we are showing this is with a special guest speaker this year—one of the founders of the Alliance of Illinois Repossessors (AIR). He will be educating our members about the benefits of a state association as well as the future endeavors of AIR. We are looking forward to listening to this energetic presentation. Not only have we invited the founders of AIR, but we have extended an open invitation to Detroit to representatives of all the state associations. Those that do come will receive a booth from which they can answer questions and openly speak with our members honestly, and without any presence of the forwarding community.

I am proud to be a member of Allied Finance Adjusters, and I am even prouder to be President of the very first “national repossession trade association”. Allied has been serving the repossession industry since 1936. We are a “National Repossession Association” and are dedicated to the repossession agency owner.

We don’t invite forwarding companies or others dedicated to sucking the life out of the industry to be made into ‘associate’ members in order to supplement the treasury or to make us look bigger. We support the industry on our own with the support of our members and their dedication to the industry.

I invite you to come to our conference in June. Meet us decide for yourself who has your best interest at heart.

What is the AFA doing for the State Associations? Here's what! Wade Argo,

President

Allied Finance Adjusters

About the Allied Finance Adjusters

Allied Finance Adjusters is the largest Not-For -Profit national trade association made up of certified, Insured, Bonded and CFPB Compliant repossession recovery professionals. AFA has led the industry as the first trade association to offer its members CFPB training and ongoing continuing education. AFA Members have proven themselves to be the most professional in the industry at locating and safely repossessing collateral on behalf of all the lending institutions including, Banks, credit unions as well as other legitimate lending companies. All new AFA members must pass a rigorous background check along with complete and thorough facilities check. AFA does not support phantom or ghost offices period.

All AFA members are independent business owners and each one is covered by the exclusive AFA $1,000,000 Fidelity Coverage Policy.

Allied is committed to the promotion of excellence within our profession. As the leader in this industry, we will do this educating our members and all those associated with the finance industry regarding innovations. Changes and improvements that affect this trade and give them the opportunity to exchange knowledge, experience and ideas in a collaborative environment.