"Collateral recovery is a necessary part of a properly functioning nonprime automotive industry. Nonprime lenders in particular have relied on recovery agents since day one to provide a critically needed service that enables lenders to stay in business. Without professional, compliant, and well trained recovery professionals to partner with lenders, the availability of credit to the nonprime consumer would disappear. I have been involved with recovery industry professionals directly as a lender, and most recently as a facilitator and advocate of implementing industry standards that will not only secure the long-term viability of the industry, but will also ensure that consumers are treated fairly and with respect. It is through this very engaging process that I have gained exposure to the recovery industry's passion to not only do a great job while adhering to legal and regulatory compliance, but to do the right thing by the consumer and the lender."
President, National Automotive Finance Association
"As a Lender, I have forged a number of great relationships with a number of repossession agencies. These companies are a vital part of our businesses and provide excellent service in recovery of our assets that are in default. Without these services, we as lenders would have a difficult time keeping our loss ratio to a minimum. As we look at the current environment, we need to support our agents/owners and other agencies like American Recovery Association, CALR, Harding Brooks Insurance and others who have been advocating for all repo agents. Let's support our agents and continue to make our voices heard!"
Loan Resolution Manager
Caltech Employees FCU
"The auto-finance industry is a complex business, and the repossession segment handles one of the most challenging portions of the entire lifecycle. Finance companies enter into vehicle leases and retail installment contracts with consumers hopeful the relationship will last for the duration of set terms. But as the level of risk rises stemming from the consumer's credit profile, the chances of default grows, too. Repossession agents must step in during the most volatile stage of the damaged relationship between the customer and finance company to recover the collateral in an effort to reduce losses. These agents navigate an immense amount of state and federal mandates, ranging from the removal and storage of personal property in vehicles to ensuring the collateral enters proper wholesale channels. And they sometimes have to complete the repossession work on contingency and thin profit margins.
Repossession agents complete tasks few individuals in the auto-finance community ever want to do, but reputable firms do so professionally while meeting governmental mandates and client demands. Without the crucial activities performed by repossession agents, credit availability for vehicle financing could become so limited that only consumers with significant financial resources could ever acquire invaluable transportation. While some consumer advocates might see repossession agents as nuisances or worse, they actually perform critical tasks that make auto financing available to the individuals those activists represent."
Nick Zulovich, senior editor at Cherokee Media Group, which publishes SubPrime Auto Finance News and BHPH Report and hosts the series of industry conferences during Used Car Week that includes Auto Fin Con and Repo Con
"Few industries are more misunderstood, than the collateral collection industry. Cable TV can take credit for perpetuating the vilification of the dreaded "Repo Man". Many have a mental picture of some violent individual coming in the night to threaten and harm if needed, in order to 'steal' the car back for the greedy bank that has no heart.
Nothing could be a more incorrect characterization of this industry and the people of character that make it up.
I have been serving this industry for well over 25 years, and know it very well. The people that make it up are hard working, honest, intelligent and loving people. They are generous and kind. They are undervalued in our society.
The fact is, if the repossession industry did not exist, the banks would only be lending to those that really don't need a loan to get a car. They would only lend to the 'safe' risk clients. Anyone who had marginal credit or worse, would be denied the opportunity to finance a car or truck.
If repossessions are not permitted for an extended period, it will dramatically impact the repo industry and many will not survive. That is obvious, but, it is merely the first domino to fall. Next will come the car dealerships that won't sell cars, and then the auto makers that won't make them. That trickle down effect will cause a Tsunami in our economy. Banks will not be hurt as much, they will just cease to lend during that period. The consumer will pick-up that tab.
This industry has evolved into one that works smart. They work safe. They do not carry weapons and they do not threaten nor harass. They avoid confrontation. I know some companies that want to hire only college grads. After all, paying a little more for 'intelligent' reclamation of valuable assets is far superior to going to court.
This industry is under attack and the Corona Pandemic has exacerbated that. If one understands truly what part they play in our overall economy, then they know they are an 'essential' business if there ever was one. I applaud their efforts and support their cause."
President, Web Weaver USA, Inc.