ARA Confronts CoPart Over Repossession Practices

The American Recovery Association (ARA) recently met with CoPart leadership to address concerns about the company's role in the repossession sector. ARA claims CoPart secures impounded vehicles for national lenders, which qualifies as repossession. CoPart, however, argues these are merely "tows or transports to auction," not subject to repossession regulations.

ARA insists that vehicles tied to installment agreements, when secured before the loan is complete, are repossessions and should be regulated accordingly. “Repossession agents must adhere to strict regulatory and insurance requirements,” ARA stated, citing rules against subcontractor use, workers' compensation mandates, and repossession insurance. CoPart argues these do not apply, as they do not classify their activities as repossessions.

CoPart emphasized its role as a $5.5 billion auction-focused company, but ARA countered that if CoPart recovers vehicles under installment agreements, it must meet the same standards as repossession agents nationwide.

“This is not a licensing issue,” ARA clarified. “If these requirements are unnecessary in some cases, no repossession agent should be held to them.”

ARA vowed to continue advocating for regulatory compliance, stating, “We will not stand by as large corporations circumvent regulations that protect agents, lenders, and consumers.” Source: https://curepossession.com