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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