In a meeting attended by repossession industry leaders at a secret location in October 2014, current practices of repossession assignment forwarders was discussed. During this meeting, it was agreed forwarding companies are guilty of unfair and unsafe practices when assigning repossessions to their network of agents.
Agencies are expected to work for fees much lower than industry standards. Repossessors have been asked to work assignments contingent on recovery meaning if the car is not recovered, there will be no monies paid to the recovering agency. Expecting repossessors to give away services such as skip tracing and storage is common practice among the growing number of forwarders.
Public Safety has always been first and foremost in the practices of the professional repossessors. Because the forwarders have forced the recovery agency owners to work for low fees, quality of service has suffered. Truck and equipment maintenance has declined while hiring standards have been decreased. More than ever, consumers are at risk of untrained and unlicensed repo-thugs attempting to repossess their cars. Forwarders have resorted to hiring the cheapest instead of the more qualified.
On many occasions, recovery agencies are asked to work assignments which have previously been assigned to neighboring repossession companies without their knowledge. This practice has always been considered not only unsafe, but unethical.
Repossessors normally would hook up to a wanted car and safely leave the scene of the repossession. Now the recovery specialist is asked to knock on the customer’s door and ask for the keys after hooking up the car to save expenses to the client. This dangerous practice, known to cause unwanted confrontations has been blamed for injuries and death to customers and repossessors.
Agents are running multiple addresses on assignments only to determine the account is a charge-off or a skip. Repossession agencies are unable to invoice for time and mileage when checking these old accounts which add up to hundreds of thousands of dollars. When the recovery agency notifies the forwarding company the customer/debtor has moved, the forwarding company sells this information to their client. Forwarders are saving millions not paying recovery companies for this information. The forwarder notifies their client the debtor has moved and charges a service fee. The repossession company loses, the forwarder wins.
Forwarding companies are not only paying low fees, but expect the recovery company to wait as long as 90 days to receive payment.
It was recently learned, the CEO of one of the largest forwarding companies stood up at a recent repossession convention and told the group they should “sacrifice the quality of service and appreciate the volume of assignments received”. When repossessors sacrifice the quality of service, people die. We cannot, any longer as an industry risk our lives as well as risking the lives of the consumer because of unsafe and unfair practices of the repossession assignment forwarders.
The attendees of this meeting have decided it is time to do something about the forwarders taking advantage of the professional repossession companies. An anonymous strike was discussed by the group.
Taking a page from the worldwide group known as “Anonymous”. Anonymous is a loosely associated international network of activists which promote anonymous social engagement by direct action.
Repossession leaders at the unsolicited meeting have chosen to use the group’s signature logo.
An anonymous strike is designed to protect the repossession company from acts of retribution by the forwarding companies.
Beginning February 1st 2015, repossession agencies will begin the anonymous strike.
Across the nation, recovery companies will accept the assignments as usual but will not work the assignment. All updates sent to the forwarding company targeted will state “address checked but vehicle not showing”, or “customer no longer at address”. The anonymous strike is designed to substantially lower the productivity of the forwarding company. Anonymous strikers will work some assignments while ignoring others. In some instances, no assignments will be worked while in some situations all assignments will appear to be worked. In some situations, only certain clients of the forwarder will be selected as “not to work”. The forwarding company and their clients will not be aware of the loss in productivity for 90 days costing the forwarding companies and their clients millions of dollars and possible litigation concerns.
At the meeting held in a secret location, a list of the forwarding companies was presented to the industry leaders for review. After careful consideration Primeritus Financial Services based in Nashville Tennessee was chosen as the first forwarding company targeted. The second forwarding company to be targeted has also been chosen but the name of the forwarder has not and will not be revealed.
Repossession companies would prefer a direct relationship with the lenders but understand the forwarding companies do provide a service to the lending community. “This could have all been avoided if the forwarder was not so greedy” one of the attendees stated.
The message has been sent, repossession companies have been notified. Repossession agencies from all of the national, regional and state associations are banding together beginning February 1st 2015 to protect consumers. Professional repossessors will bring the quality of service back to professional standards set before the forwarding companies entered the repossession market.