As you are well aware, there are repossession companies having their bank accounts closed by the very banks employing them, allegedly because they don’t meet the bank’s “risk profiles.” Although recent actions at the highest levels of our government should go a long way toward resolving this issue, those wheels are infamously slow to turn. Meanwhile, American Recovery Association is proactively working to correct individual wrongs as well as working with others to present a united front for the entire industry to our legislature, banks, and the Department of Justice (DOJ).
If you and your business have been directly affected by this issue, contact ARA and please be sure to inform us of the particulars.
On background, Operation Choke Point was a 2013 initiative of the United States Department of Justice to investigate banks and their business associations that the DOJ believed to be a high risk for fraud and money laundering. The program, which purportedly was to use legal and regulatory pressure to “choke off” financial support for businesses that were exploiting consumers, unfortunately had a far wider effect.
Banks were being pressured to separate themselves from legal businesses of which the previous administration disapproved (like payday loans, gun dealers, etc.). Obviously, the effect has gotten wider, yet.
Fortunately, things are changing.
On Monday, the House of Representatives passed a bipartisan bill to prohibit any future Operation Choke Point initiatives.
American Recovery Association insists the closure of accounts of professional collateral recovery agents who have been held to the highest levels of personal and business standards in the financial arena is unlawful and unconscionable – this practice must be stopped and all accounts reinstated. We have been in contact with Representative Hensarling’s office and Senator Ted Cruz’s office about this matter. Rest assured we will continue this fight until we win.
American Recovery Association