February 23, 2024

Repo Buzz

Collateral Recovery Repossession News And Directory

Alliance Of Illinois Repossessors Expose Another Brick In The Wall

Illinois started to sound the alarms on October 11, 2022 in regards to the storage crisis on the horizon, on January 1st 2023, AIR members began declining four major lenders  along with one forwarder. After thousands of cases declined the conversations began with the majority of the parties involved, while there have been some resolutions to the issues addressed, others have refused to begin the conversation even after being  providing factual data regarding the crisis on hand. The conversations have finally  brought some transparency to all in the space, but some of the facts discovered are truly concerning.

Facts that AIR has discovered:

– Forwarders are collecting storage from some clients that is not passing through to the  agent network

– Some lenders are paying spiffs/ bonuses that are not passed on.

– Repossession fees charged by the forwarders are well over $1000 and agents who  actually recovered the vehicle are only being paid $275.

– Some lenders kept vehicles stored on agents’ lots for extended periods because  auctions do not hold the same insurance coverage recovery agencies do.

– Invoices that were meant to be sent to the lender but were accidentally sent to the agent  show that declined items ,such as flatbed fees, were still being billed to the lender.

AIR is seeking a transparent relationship with the forwarding network. This is by no  means is an attack on the forwarders, as AIR recognizes they are a vital part of our  industry. However, the agent network has been left in the dark for way too long and it’s  time to shine light on some of the discrepancies in billing.

It is time to knock down the wall that has been built between agents and the lending network.

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