IRVING, Texas –
The American Recovery Association is communicating with state and federal officials regarding potential policy “that if passed would devastate our businesses over the coming months in ways that most would not be able to recover from,” according to a recent message from the organization.
ARA explained that federal proposals could be included in the next round of small business loan assistance that would not allow any repossessions for a period of 120 days from the ending of the national state of emergency.
“Needless to say, an additional 120-day moratorium on top of the downtime currently being experienced by the repossession industry would be devastating to most of our members,” ARA said.
To give ARA lobbying efforts more information to explain the association’s case to lawmakers, ARA is asking members to complete a survey that would generate an accurate representation of the companies in the repossession industry and the Congressional districts where they operate.
“Helping us gather this information will not only allow an immediate effort on this matter, it will also allow ARA to be prepared for any other matter in the future where we need to engage a lobbying effort on your behalf,” the association said.
“ARA has been calling for our community to rise up and become a strong and united voice for a long time, and it has never been more crucial than this moment,” the association went on to say.
Furthermore, ARA is recommending that members contact their own state and federal elected representatives in an effort to push back against the message recently given by Richard Cordray, the former director of the Consumer Financial Protection Bureau.
ARA said RSIG crafted a letter that members can sign and share with their respective legislators. A portion of the letter says:
However of great concern to me, my family, my employees, their families and countless others involved in and employed in the debt collection & repossession industries (which totals in the hundreds of thousands), is in his echoing the call of Hon. Maxine Waters and others for a nationwide moratorium on debt collection efforts and specifically the repossession of autos for the “duration of the crisis and its economic aftermath.”
Mr. Cordray is correct in that there is “an entire industry whose business is repossessing automobiles”; putting a nationwide moratorium on those activities would decimate that entire industry of which he speaks and would have significant long term impact on other industries including the collection industry, insurance operations, auto manufacturers and dealers and the auto finance industry.
We support efforts to help consumers during this challenging time, however there must be recognition that prior to COVID19 there were consumers who already in default and not meeting their financial obligations. There are still others that although still able to make their loan payments will actively choose not to should a nationwide moratorium be enacted. You can see this sentiment already everywhere as people discuss how they are going spend their stimulus checks and in demanding rent/mortgage freezes.
That letter and other resources for ARA members can be found on this website.