ARA Response to the New Chase Bank Contract

I have gotten several calls over the last few days concerning the new Chase contract and in calling some of the other members I know there are more than a few that are very concerned about several items in it. Some of them are very afraid that in this hard time it will be impossible to not sign the contract and are not sure how to address it without fear of losing your business. It does seem to me to be a very unfair contract that leaves the agents in a very shaky position, I personally know that I would never be able in good conscience sign it.

I have heard you talk often enough to know that you believe your agents are an important part of the Chase team and I am sure some of this comes down from higher levels but isn’t there some way to have someone understand how burdensome this is to one of your agents? This would be devastating to a member that suffers a natural disaster like a tornado, hurricane or fire. Many will have to evaluate the value of the car vs the balance in deciding what accounts they are willing to accept, that doesn’t even seem to make sense that anyone wants or should expect our members to become vehicle appraisers to decide what to accept and what not to.

Here are the most grievous ones that have been brought to my attention, all of them by multiple people.

Section 3 Services, (h) Storage, (2)

“At its sole cost and expense, Supplier will repair any damage to any Vehicle, including replacement of lost or damaged parts, which occurs while in the custody or control of Supplier, its agents, or employees. This includes satisfying the balance of the Account, or fair market value of the Vehicle, whichever is greater, if the Vehicle is stolen or deemed a total loss while in the custody of Supplier.”

Section 4.3 Prices and Rates, (c) Most Favored Customer.

“If Supplier offers more favorable pricing to any other similarly situated customer than are offered to JPMC under any Schedule, then Supplier will concurrently extend that pricing to JPMC, and this Agreement and/or any Schedule, at JPMC’s option, will be deemed amended to provide that pricing to JPMC.”

And Section 10.1 Indemnification. more for the omission of an important item in the previous contract (d)

(d) JPMC shall indemnify, defend and hold harmless Supplier, its Affiliates, its Subcontractors and each of their direct
and indirect officers, directors, employees, agents, successors and assigns (“Supplier Indemnified Person”) from any and all Losses due to, arising from or relating to third party claims, demands, actions or threat of action arising from or relating to death, personal injury, bodily injury or property damage to the extend caused by JPMC (“Supplier Indemni6ed Claim”). A` JPMC Indemnified Claim and a Supplier Indemnified Claim may be referred to as an “Indemnified Claim”.

Thank you for your time and consideration.

Mary Jane Hogan, President
American Recovery Association

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1 thought on “ARA Response to the New Chase Bank Contract

  1. For years this industry has continued to surrender to all these unfair demands. This is totally unfair and whoever signs this is at risk of going out of business.

    I am willing to bet that a lot of people will sign the contract in fear of losing the business. But first think about this.

    Should the debtor total out the vehicle then Chase would accept the fair market value from the debtors insurance company. They would then go after the debtor for the deficiency or they could finance the overage on another finance deal.

    On many auto finance deals the customer does not have any equity in their trade. The finance companies or banks are willing to extend enough money to finance the new vehicle plus the amount of money that is owed on traded in vehicle.

    For example, The debtor trade in a vehicle that is worth $5000.00 but they owes $9000.00 so the bank agree to finance the new vehicle and the $4000.00 the customer owes.

    The agent is called on to repo the vehicle several months later because the payments are to high because of the additional $4000.00 owed on the new car.

    While the agent is towing the vehicle to their lot another vehicle runs a red light and crashes into the towed repossession. The individual who ran the light’s insurance pays
    Actual cash value for the damages. Now the agent will have to pay Chase the additional $4000.00 out of his pocket.

    I am sure you will end up buying a GAP insurance policy to pay the additional amount. After all the Insurance providers need to make a little more money at you expense. Heaven forbid you turn down Chase’s business.

    I was told years ago by a wise gentleman in Florida. The only way to stop these auction forwarders was not to service their account and take the close bill. He said the forwarders would be out of business in a month. Now the forwarders have taught the banks and major finance companies just how stupid the majority of the recovery agents are.

    Now the banks are dictating to you what you must do to GET THEIR BUSINESS.


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