From RSIG – Read Before you Sign! – Chase Master Services Agreement

As an Independent Contractor, you are often asked to provide coverage and or indemnity beyond that which is normally provided in any policy of insurance. In addition the RSIG policy speaks for itself as to actual coverage provided.

When reviewing a contract you should consider all of the terms very carefully because in many cases it includes costs or requirements that will not be covered by insurance.

Two contract terms that you should pay particular close attention to in the new Chase contract are:

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.”

RSIG or all other current insurers of repossessors provide coverage for actual cash value (ACV). Under this term in Chase’s contract if the payoff on the loan is greater than the (ACV) you will be contractually obligated to pay the difference. This difference can be substantial. One case that we know of under such a clause cost the repossessor in excess of $10,000. This clause places you in the position of guaranteeing Chase’s debtor’s deficiency.

And 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.”

Basically this provision requires you to give Chase the lowest price you are currently charging any of your other clients.

For example, if Chase agrees to pay you $375 a repo but you are currently working for a forwarder who is paying $275, this contractual term would reduce the amount you can charge Chase by $100.

And Chase can come to your office to check if you are giving anyone a lower price.

“In addition to JPMC’s other audit rights under this Agreement, JPMC will have the right to audit Supplier’s records with respect to compliance with this Most Favored Customer provision.”

And make you pay the difference if you have worked for less than you are charging Chase.

“Any amounts charged to JPMC in excess of prices offered by Supplier to any other similarly situated customer for goods and services will promptly be refunded or credited to JPMC by Supplier at JPMC’s option.”

And if you refuse to pay back the difference in “excess of price” you are subject to being sued by Chase to recover this amount. This type of litigation would not be covered by your insurance.


Edward Marcum

Chief Executive Officer

Recovery Specialist Insurance Group

9379 Forestwood Lane

Manassas VA 20110



“The Bitterness of Poor Quality

Remains Long After the

Sweetness of

Low Price is


Print Friendly, PDF & Email

1 thought on “From RSIG – Read Before you Sign! – Chase Master Services Agreement

  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.


Leave a Comment

Skip to toolbar