The American Recovery Association (ARA), the Alliance of Illinois Repossessors (AIR) and DRN|MVTRAC|SCM president Jeremiah Wheeler are all involved in what they see as “a serious threat to the entire repossession industry” that started as a local issue in Illinois and now spreading to Michigan and Indiana.

According to a message distributed this week by ARA, several municipalities now require repossession companies to obtain permits — via online platforms such as Oxcart Permit Systems — to perform work they are already licensed, insured, and contracted to do.

The association said fees range from $20 to $35 per recovery, with fines exceeding $1,000 for repeated violations.

With financial support from Wheeler, AIR has retained a lobbyist and is actively engaging industry partners, lawmakers, and municipal leaders to oppose these ordinances.

ARA explained the Oxcart system was originally designed for oversize and overweight vehicle permitting. The association said it’s now being used to regulate repossessions, with municipalities using Oxcart to:

—Restrict repossessions from private property, even though the Uniform Commercial Code (UCC) permits lawful repossession from private property.

—Require written postings at recovery sites explaining why vehicles were removed, publicly sharing consumers’ personal information, violating privacy protections, and raising PPI concerns.

—Mandate extensive pre- and post-repossession notifications to law enforcement, despite ICC regulations already allowing pre-reporting.

—Force agents to stop blocks away from the repossession location to upload a photo of the recovered vehicle on the back of the truck or face a $500 fine.

ARA said fines imposed on agents have reached nearly $60,000 in just four small towns, causing many agents to stop performing repossessions in those areas.

“There appears to be little to no oversight, allowing municipalities to create and enforce their own rules. Enforcement efforts should be refocused on targeting bad actors who violate laws or industry standards, rather than penalizing fully licensed and compliant repossession companies,” ARA said in its message.

As expensive as the fines could be, it’s the photo mandate that has ARA and other repossession officials most concerned.

“Forcing a recovery agent to stop shortly after a repossession — often in a charged, emotional environment — unnecessarily exposes them to confrontation and danger,” ARA said, noting that an Illinois repossession agent was shot and killed in 2023 after stopping to comply with ICC e-ticket requirements.

“This tragic loss underscores a sobering reality: every additional mandated stop, notification, or on-site administrative task increases risk. Compliance should never come at the cost of an agent’s life,” the association continued.

ARA implored lenders, agents, forwarders, state associations, and other industry partners to “stand united” to defend lawful repossession operations and seek changes in Illinois, Indiana, Michigan and beyond.

“The result of these ordinances is clear: agents face excessive fines, small businesses absorb costs lenders cannot cover, and many agents are choosing to avoid these municipalities altogether, leaving lenders unable to recover collateral and creating service gaps that ultimately harm consumers and the industry alike,” ARA said.

ARA president Todd Case added, “We cannot allow municipal overreach to jeopardize agent safety. Together, we will safeguard our right to operate fairly, safely, and sustainably.”