Oct 17, 2019 •
News •
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The American Recovery Association (ARA) is pleased to announce that the Florida Department of Agriculture and Consumer Services has approved ARA as a licensed Recovery Agent School and Training Facility. This recognition allows all future recovery professionals to gain the training required to receive a Florida license through ARA.
Along with the recently introduced ARA/RDN real-time compliance solution, this recognition from the state of Florida will allow ARA to offer all recovery industry stakeholders the ability to streamline how licensing and compliance are engaged and verified.
“It is an honor for Florida to acknowledge the strength of the ARA Field Agent Training Program and accept it as a viable choice for the training required to receive a repossession license,” said ARA President Dave Kennedy. “Through our continuing efforts to create an industry-wide solution for training, licensing and compliance, we believe that all industry participants will benefit.”
To build positive synergy and help establish universally accepted industry standards, ARA is inviting all repossession agency owners to an in-person meeting in Dallas, Texas on Tuesday, November 5, from 9 a.m. – 12 p.m. CST, where an in-depth presentation will outline current ARA initiatives.
The meeting will be held at the Westin Dallas Fort Worth Airport, 4545 W John Carpenter Freeway, Irving, TX 75063. For those not able to attend in person, ARA will be holding webinars on Thursday November 14 at 3 p.m. EST/12 p.m. PST and Friday November 15 at 12 p.m. EST/9 a.m. PST to communicate and answer additional questions.
Oct 16, 2019 •
News •
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Written by ALS Resolvion CEO and ARA Member, Michael Levison
Effective management of impound repossessions is challenging. Impound yard operators are notorious for being difficult and, in many cases, unscrupulous operators. The entire process consists of several unconnected parts and requires specialized expertise to handle effectively. If not handled properly, the process can be extremely expensive, or even worse, can result in the loss of your lien.
The article will examine the issues and highlight strategies that should increase your net recoveries on impounded vehicles.
VIN Monitoring
The first step in handling an impound is actually knowing that the vehicle that you are trying to recover has actually been impounded. This may seem obvious but this is where most problems start. While a party that is considering converting title is required to give the existing lien holder notice, the process is often delayed or ignored. We also see many cases where the lender does not have clear procedures for identifying impound notifications. All of this results in loss of time and when it comes to impounded vehicles, time is definitely big money.
To mitigate this issue, we recommend a couple of basic steps: (1) subscribe to a VIN monitoring service that has access to law enforcement information and other data that can give you early notification on potential lien losses and (2) establish clear internal procedures for acting on the information quickly. Storage fees add up very fast so you want to establish contact with the lot immediately. Taking these basic steps to have a defined internal process and VIN monitoring system will not only reduce your storage fees but also make your impound recovery operations more efficient helping you save time and money.
Knowledge is Power
Impound lot operators have developed a pretty bad reputation for exploiting situations. One of their favorite tactics is to charge fees that, under local regulations, they really are not allowed to charge. This is where knowledge of local rules can be very valuable. Admittedly, it is not always easy to find. Rules can vary based on state, city, county, etc. However, basic web searches can often yield the insight that you need. Even if you don’t have the information, don’t hesitate to push back on the fees. They are usually willing to negotiate.
If the fees are very high and you are convinced that you are being grossly overcharged, you may want to take (or threaten) a legal action known as an Interpleader Proceeding. Under this approach, the fees demanded are placed with the court and then the court decides what is allowed. Just the threat of going this route is often enough to persuade a bad operator to be more reasonable. Thus, in order to avoid paying higher fees for recovering impounded cars, equip yourself with knowledge of local rules or ensure you have an impound partner with expert negotiating skills.
To Pay or Not to Pay
It pretty common for impounded vehicles to have severe damage which obviously would materially reduce auction values. Combine that with the impound fees, transport and auction-related fees and it does not take much to pull the transaction into the red. Careful analysis should be conducted on borderline situations. Spend a little money and send an inspector to take pictures and complete a proper condition report. There are also multiple data sources that can give you pretty accurate estimates of value. If it does not make sense, just let the lien go.
Rapid Impound Recovery
Speed of recovery is especially important when dealing with impounded vehicles. Given the very high daily storage rates charged by many lots, just a few days of additional storage can make the difference when determining whether or not it makes sense to recover the unit. Align yourself with vendors that can coordinate a pick up quickly regardless of location and who are willing to front the fees on your behalf. Moving quickly, with the right partners, can add significantly to the net realized value.
Insurance Related Issues
Often times impounded vehicles are damaged and have active insurance coverages under which you are entitled to make a claim. The opportunity is overlooked by many lenders. Others attempt to pursue it but don’t really have the expertise to optimize the opportunity. There are several firms that offer expertise in this area including our nationwide skip trace and repossession company, ALS Resolvion.
In addition to timely filing of insurance claims, it is good practice to audit the claims payment you receive. The insurance company’s objective is to minimize payout and they have many ways to accomplish this goal. Often times their decisions are subjective and/or made on inaccurate data. One lender recently reported to us that simply auditing claims payments for accuracy added almost $300 in net proceeds to each impound recovery. For a sub-prime lender, that is huge.
One last opportunity that can be pursued are excess proceeds that might be generated from a lien sale. Legally, the party that successfully converted a lien is only entitled to the amount of the fees they claimed were owed. If a sale of the vehicle generates amounts in excess of the amount due, it is supposed to be remitted to the lien holder. Of course, in many cases this is not done voluntarily but some lenders monitor the issue and will pursue it when appropriate.
Summary
As this article has mentioned, there are many issues involved when it comes to recovering an impounded vehicle and different strategies to solve them. Optimizing financial results from impounded vehicles is tricky business; however, the right processes and partners can make a big difference.
May 20, 2019 •
News •
Comments Off on The Case for Unifying Industry Standards
People are buzzing about what’s happening at ARA. Joel Kennedy, Chief Operating Officer at TruDecision and NAF Association Board member, contributed a recent article in Non-Prime Times Magazine. This article is definitely something every Repossession Professional needs to read.
Since the partnership between NAF and ARA was formalized in 2018, the conversation around forwarders is shifting. Kennedy’s article contains important insights you need to understand regarding:
Dec 5, 2018 •
News •
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We have learned a major insurance carrier servicing more than 225 agencies is leaving the space. Once again, our industry is facing a limited choice situation that will definitely create hardships for many agencies in the country.
It is important you immediately reevaluate your current coverages and carrier to be sure you will not be negatively affected in the short term. This is especially true if you are covered by either Clear Blue or Falls Lake. There are still a couple of options available – please be sure you have time to find the required coverages before you find yourself uninsured.
We are aware of the need to continue to build relationships with carriers and develop programs that assure our members can find effective and affordable programs that serve their needs. We have asked for a meeting with Harding Brooks Insurance Agency and their exclusive program through AmTrust (the carrier for ARA’s preferred insurance program). Our conversations will be centered around discussing loss trends, what we are doing as an Industry to mitigate exposure, as well as the opportunity to strengthen this relationship.
Harding Brooks is rooted in this repossession industry and, with our united front, we will work to find insurance solutions for your business.
Nov 14, 2018 •
News, Tools & Insights •
Comments Off on ARA Compliance System: How-To
It’s important you understand how to access the ARA Compliance System, as this is your portal into the critical documents, policies, and procedures you need as a repossession agent. Once inside the company or individual test portal, it’s important to review the study materials available, as each test is crafted to ensure your knowledge of the material. For your convenience, we put together a step-by-step guide to help you navigate your way through the compliance portal.
Step 1. Login Information
Do you have a login and password in order to gain access? If you don’t already have this information, please contact John Morgan by email at john@americanrecoveryassn.org or call him at (469)-212-0247. If you don’t remember your password, and yet remember the e-mail address associated with your account, you can still access your company profile.
Step 2. Gaining Access
You have one of two ways to enter your company’s compliance portal.
Go to www.Repo.org. Find the top banner that reads “Compliance System”. Click the red tab to be taken to the login page.
Go to www.aramembercompliance.com this will take you directly to your login page. If you previously had a login and password and have forgotten your password, simply hit the “Request Password” box. You will be directed to a second page. You will be asked for either your User ID or e-mail address. Once you provide that information, you will be emailed instructions for resetting your password to gain access.
If you still have not obtained access into your Member Dashboard, please contact John.
Step 3. Review Your Information
Before you start taking your tests, we recommend you review all of your available documents. Please ensure you have all of your needed compliance documents. Also, you may want to simply add items like your company policies and procedures manual, clean desk policy, or your W9 information.
If you need to enter more documents, please look at the top right-hand side of the member dashboard for the Document Upload box. You can pull documents from your computer and send them directly to John. No need to clip and paste.
Step 4. Review Training Topics
In the “Training” area, you will receive a comprehensive look at not only your training status, but you can review your entire company’s base of employees to see what tests they have taken. In the “Training Status” search filter, you can filter by vendor or training progress. When filtering by “training,” this will display the training you have yet to complete. When filtering by “Training log,” this will display the tests you have already taken. As an administrator who represents your company, we encourage you to take all available tests.
Step 5. View Study Guide
Let’s pretend you need to take the test on Bankruptcy, as shown above. You can start reviewing the information provided in the resources shown above. This is the same information you will be tested on later, so start by clicking “View Study Guide“. This will take you to another page, where you will see a PDF document that lays out important information.
Step 6. Watch Topic Webinar
Another helpful resource are the instructional videos that go in-depth and provide additional information on each topic. By clicking, “View Webinar” you will be taken to a new web page where you can watch the webinar.
Step 7. Start Taking the Test
Once you feel prepared, you can begin testing. Once you have answered all 10 questions, you can submit your answers. You must correctly answer 8 out of 10 questions to pass each test. You may take the test as many times as you need, but on the third failure, you’ll be logged out of the CCRS system for a 24-hour period.
We hope this information was helpful. Please reach out to us if you have any further questions on the ARA Compliance System or the CCRS certification.
Aug 20, 2018 •
News •
Comments Off on Registration, Theme and Speakers Announced for 11th Annual North American Repossessors Summit™
IRVING, Texas – August 14, 2018 – The American Recovery Association (ARA), in conjunction with headline sponsor, Harding Brooks Insurance, is excited to announce the theme, secured keynote speakers and early-bird registration for the 11th annual North American Repossessors Summit set to take place at the Omni Mandalay Hotel in Irving, Texas on April 18 and 19, 2019.
Seeking to address the ever-changing business environment and to help attendees conquer the fear of change, the NARS 2019 theme has been coined: “Adapt, Conquer and Overcome: Accept the Marketplace, Face your Fears and Make Money.” The NARS planning committee swiftly and unanimously chose this theme for NARS 2019, thanks to their combined experiences from the lending, recovery agent and vendor sides of the industry.
“With the way the industry is structured today, it’s truly an ‘adapt-or-die’ situation for small business owners,” said ARA president, Dave Kennedy. “The speakers and education sessions at this year’s NARS will be heavily business-focused. We want to arm recovery professionals with the tools they need to change their strategy, embrace new practices and build a business they can eventually retire from or pass on to the next generation.”
Breaking records of past summit timelines, the committee has already secured two keynote speakers: Bob Burg, motivational speaker and bestselling business author, and Mike Sarraille, a former Navy SEAL officer.
A highly acclaimed speaker and the author of The Go-Giver, a Wall Street Journal and BusinessWeek Bestseller, Bob Burg will deliver a 3-hour business workshop at NARS 2019. Through this workshop, Bob Burg will teach NARS attendees profitable, business-building skills they can immediately take back to their businesses. Bob was named one of the 30 Most Influential Leaders by the American Management Association and one of the Top 200 Most Influential Authors in the World by Richtopia.
In addition to serving 15 years as a Navy SEAL officer and 5 years as a U.S. Marine and Scout-Sniper, Mike Sarraille is a graduate of the University of Texas McCombs Business School. Not only is he a leadership instructor and strategic adviser for Echelon Front, a management and consulting firm, but he’s also a recipient of the Silver Star, six Bronze Stars, two Defense Meritorious Service Medals, and a Purple Heart. According to Echelon Front, Mike Sarraille and his fellow SEAL members in the program “creatively interweave edge-of-your-seat SEAL and Top Gun combat stories with practical leadership concepts and principles.”
Early bird registration is now open for $375, a savings of nearly 25% off the normal registration fee. You can sign up for early bird registration at reposummit.com. ARA members can also purchase tickets for up to four additional staff members at a rate of $250 per person. Registration for exhibiting and sponsorship opportunities for NARS 2019 will be announced and open to the public soon.
About North American Repossessors Summit
The North American Repossessors Summit (NARS) is a 2-day conference for professionals in the recovery and remarketing industries to come together from across the country to address key issues impacting their industries and businesses. NARS provides an open and collaborative environment for these professionals to address industry challenges and complexities as a a way to build a foundation for the future. The summit welcomes recovery and remarketing specialists belonging to every type of professional organization and association across the country. For more information, visit www.reposummit.com.
Jun 5, 2018 •
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Fort Worth, Texas, June 05, 2018 – The American Recovery Association (ARA) and the National Automotive Finance Association (NAF Association) are excited to announce the results of their first joint effort to establish a minimum compliance standard for third-party repossession vendors.
Jack Tracy, Executive Director of NAF Association and Dave Kennedy, President of ARA
Together with a working group of NAF Association bank and finance company members, the leadership of ARA has sought to address the lack of standardization of compliance programs by setting forth the following goals:
Create a set of baseline criteria for NAF Association members to use in the oversight, management, and auditing of recovery agents.
Produce a standard list of compliance requirements for recovery agents to help them satisfy all of their clients.
Streamline the process of 3rd party management for recovery agents specifically, resulting in lower costs for all parties.
“We want to create a significant solution for both sides of the auto-lending and recovery industries,” said Jack Tracy, executive director of NAF Association, “I look forward to our continuing relationship and mutual problem-solving.”
The resulting baseline standards encompass the key areas of vendor compliance:
Owner / Business Regulatory Reviews
Training
Policies & Procedures
Vendor Site Visits
“Achieving efficiency in the compliance and education platforms will be a monumental accomplishment for the industry and is something we have been striving to achieve for so long,” said Dave Kennedy, president of ARA, “It will eliminate costs and enable both sides to better utilize human resources. I am confident that, by working together, our associations can develop more programs that create major cost efficiencies for both memberships.”
For more information about ARA, its partnerships, and its member benefits, please visit repo.org.
About National Automotive Finance Association
The National Automotive Finance Association (NAF Association) supports its members and the industry with education, research, and information. Programs include Annual Below-Prime Auto Finance Conference; workshops and webinars; annual Below-Prime Automotive Financing Survey; Standards of Financial Reporting; and Code of Responsibility for the industry.
About American Recovery Association, Inc.
American Recovery Association (ARA) is the world’s largest association of recovery and remarketing professionals. ARA members specialize in locating and repossessing collateral on behalf of lending institutions, including banks, savings institutions, finance companies, credit unions, rental/leasing companies, and auto, truck, and equipment dealers. ARA is a nonprofit association whose members serve 27,000 national and international cities. All members are certified independent business operators. For more information, call 972.755.4755 or visit the website at www.repo.org.
Mar 14, 2018 •
News •
Comments Off on AMERICAN RECOVERY ASSOCIATION SELECTED FOR EXCLUSIVE PARTNERSHIP WITH BRIDGECREST
ARA announces partnership with Bridgecrest on training, vendor vetting
Irving, Texas, March 14, 2018 – The American Recovery Association (ARA), the world’s largest association of recovery and remarketing professionals, is excited to announce a new partnership with Bridgecrest. As part of this agreement, ARA will assist Bridgecrest in their vendor vetting, training and monitoring program.
“We are honored to be chosen as the exclusive training program by Bridgecrest and are happy to help reduce the cost burden on vendors,” said Dave Kennedy, President of ARA. “We still believe repossessors should only have to choose one training service, but until our compliance program is accepted by everyone, we are determined to provide the best value.”
ARA seeks to be a viable industry solution to the high cost of vendor training. This partnership is a major benefit to Bridgecrest’s current vendor network, as it significantly reduces the financial burden placed upon them.
For more information about ARA, its partnerships, and its member benefits, please visit repo.org.
About Bridgecrest
Bridgecrest Acceptance Company is a licensed third-party servicer, servicing loans for DriveTime and other affiliated finance companies. For more information on Bridgecrest Acceptance Company, please visit bridgecrest.com.
About American Recovery Association, Inc.
American Recovery Association (ARA) is the world’s largest association of recovery and remarketing professionals. ARA members specialize in locating and repossessing collateral on behalf of lending institutions, including banks, savings institutions, finance companies, credit unions, rental/leasing companies, and auto, truck and equipment dealers. ARA is a nonprofit association whose members serve 27,000 national and international cities. All members are certified independent business operators. For more information, call 972.755.4755 or visit the website at www.repo.org.
Nov 16, 2017 •
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ARA President Dave Kennedy was asked to participate on a panel Monday night at Used Car Week, alongside officers from JD Power and Pelican Auto Finance.
The panel opened Used Car Week 2017 and was titled “The State of the Industry: The factors and trends that will shape the retail, auto finance and repossession industries in 2018.”
The association and our industry can be proud Dave was chosen to represent them at this significant conference where a majority of the attendees were c-level executives.
“Dave made a great impression at Used Car Week. The phrase ‘Relationship Recovery‘ was born, and he received a great deal of interest from several lenders in the room.” – Keith Baggett, Repossessors Inc.
Dave spoke to the current industry trends in repossession, including new technologies such as body cameras and routing systems. When discussing third-party compliance, Dave stressed the importance of lenders knowing their recovery agents and having a direct relationship with them in order to avoid risk.
We are proud of Dave and we look forward to continuing this conversation with lenders and representing our association at events like these.
Oct 19, 2017 •
News •
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A survey published earlier this year showed that in the past 12 months, hackers have breached half of all small businesses in the United States. Small businesses, which often don’t have the revenue to afford their own IT departments, are especially susceptible to phishing attacks via email or fraudulent activity through their online activities.
Eighty-seven percent of small business owners don’t feel they’re at risk for a cybersecurity attack, and 1 in 3 small businesses don’t have the tools in place — firewalls, antivirus software, spam filters or data-encryption tools — to protect themselves.
The American Recovery Association (ARA) wants you to know YOU are at risk.
National Cybersecurity Awareness Month (NCSAM) has been observed every October since 2004. The program was developed by the Department of Homeland Security and the National Cyber Security Alliance to ensure every American has the information and resources to stay safer online.
In the past, we have had webinars on things you should or should not do on social media sites. This month, ARA is using this article as our education material. With so many things to think of during a hectic day, cybersecurity might be a thought that never happens. This is why you use technology to help protect you from attacks you don’t often think about, or for many, do not understand. Make sure you have your computers protected with at least the following measures:
With these in place, you can keep out a lot of the bad stuff. Just remember, there are consequences for your online actions.
We’ve collected these cybersecurity statistics for small businesses from a variety of sources.
General Small Business Cybersecurity Statistics
The numbers show small businesses are not only at risk
for an attack, but have already been attacked:
CYBERSECURITY STATISTICS – Numbers Small Businesses Need to Know
55 percent of respondents say their companies experienced a cyberattack in the past 12 months (May 2015-May 2016), and
50 percent report they had data breaches involving customer and employee information in the past 12 months (May 2015-May 2016).
43 percent of cyberattacks target small business. Only 14 percent of small businesses rate their ability to mitigate cyber risks, vulnerabilities and attacks as highly effective.
60 percent of small companies go out of business within six months of a cyberattack.
48 percent of data security breaches are caused by acts of malicious intent. Human error or system failure account for the rest.
Small businesses are most concerned about:
As you can see, just like us most other small business industries are most concerned about the security of customer data. In the aftermath of these incidents, these companies spent an average of $879,582 because of damage or theft of IT assets. In addition, disruption to normal operations cost an average of $955,429.
The root causes of data breaches broke out as follows:
While many small businesses are concerned about cyberattacks (58 percent), more than half (51 percent) are not allocating any budget at all to risk mitigation.
Dangerous disconnect – One of the more popular responses as to why small businesses don’t allocate budget to risk mitigation was they “feel they don’t store any valuable data.” Yet a good number reported they in fact DO store pieces of customer information that are of significant value to cyber criminals:
68 percent store email addresses;
64 percent store phone numbers; and
54 percent store billing addresses.
Small businesses reported that only:
38 percent regularly upgrade software solutions;
31 percent monitor business credit reports; and
22 percent encrypt databases.
If a company has a password policy, 65 percent of respondents say they do not strictly enforce it.
16 percent of respondents admitted they had only reviewed their cybersecurity posture after they were hit by an attack.
75 percent of small businesses have no cyber risk insurance.
In the end, the keys are: get educated and be diligent. Employees have to be made aware that what may appear to them a harmless internet connection can open the door for a ruthless cyberattack.
*Portions of this article were taken from malwarebytes Labs and other open source resources.
We have learned a major insurance carrier servicing more than 225 agencies is leaving the space. Once again, our industry is facing a limited choice situation that will definitely create hardships for many agencies in the country.
ARA President Dave Kennedy was asked to participate on a panel Monday night at Used Car Week, alongside officers from JD Power and Pelican Auto Finance.
