Along with opening registrations for its annual convention, the National Independent Automobile Dealers Association sent its response this week to Sen. Elizabeth Warren, who recently launched a “probe” into the auto financing and repossession industries to seek information on “harmful anti-consumer practices as auto repossessions skyrocket to levels not seen since the 2008 financial crisis.”

In its letter to Warren, NIADA not only told the Massachusetts Democrat that it does not collect or maintain the specific requested data, the association also explained how the buy-here, pay-here retailing and financing segment is designed to function.

“Contrary to certain reports cited in your letter, recovering a vehicle is a labor-intensive and costly process,” NIADA wrote in the letter signed by CEO Jeff Martin. “It is also a difficult and emotional experience for consumers that finance companies endeavor to avoid initiating whenever possible. The idea that a recovery is an embedded or preferred outcome of the BHPH business model does not reflect the realities of legitimate BHPH operations. Recovery is typically pursued only after all reasonable efforts to help a customer remain current on payments have been exhausted, not as a profit-generating business strategy.

“Creditors are financially successful when customers fulfill their agreed-to payment obligations throughout the life of a contract,” NIADA continued. “To that end, many creditors work with customers who are facing temporary hardship, including payment plans or voluntary returns, to avoid recoveries wherever possible. Moreover, on-time payments by customers with thin or imperfect credit histories can assist in improving their credit profiles over time, further supporting long-term financial health and empowerment.

“In some instances, customers voluntarily agree to the installation of global positioning systems or starter interrupter devices as part of the sales agreement,” NIADA went on to say. “These technologies are primarily used to facilitate communication about payment responsibilities, and their presence does not indicate that a recovery is automatic or inevitable. In fact, creditors use these tools to help customers stay on track and reduce instances and the costs of vehicle recovery, recognizing that the best outcome for both the customer and creditor is a fully paid-off vehicle.”

NIADA also reiterated that the association works with its state affiliates to provide compliance information on state and federal regulations, in addition to education opportunities at the BHPH Dealer Forum, NIADA Convention and Expo, Certified Master Dealer program and webinars. NIADA serves as a continual resource to dealers on questions about federal and state compliance requirements.

“The association takes pride in setting the standard for the used-car industry, and we will remain steadfast in this pursuit moving forward,” NIADA wrote.

NIADA emphasized that it takes congressional inquiries seriously and makes every effort to respond accordingly. In this instance, NIADA expressed its concern about releasing confidential business information of its members.

“NIADA would not have the authority to disclose these details even if they were available within our records,” the association said.

The association’s letter also was sent to Sen. Tim Scott, the South Carolina Republican who chairs the Senate Banking Committee to which Warren is the ranking member.

Warren previously asked for details and data by Monday from NIADA as well as Ally Financial, Capital One, Chase Auto, GM Financial, Toyota Financial Services, America’s Car-Mart, Byrider, CarHop, DriveTime, along with the American Financial Services Association and the American Recovery Association.

Registration opens for NIADA Convention and Expo

Organizers are climbing mountains for this year’s NIADA Convention and Expo.

NIADA opened early bird registration for its largest of event of the year that will be June 21-24 at The Gaylord Rockies in Denver

Hotel registration also opened with a special discount rate of $249 per night/plus resort fee and taxes.

The deadline for early bird registration and the discounted hotel rate is May 20.

NIADA highlighted that dealers will be able to enhance their businesses with the top education led by fellow successful dealers and industry leaders.

The favorite peer education will return with the Dealer Rounds, allowing dealers to join other dealers in small groups to discuss industry topics and share best ideas and practices. Each group will be led by experienced dealers.

The convention also will feature hundreds of business solutions in the expo hall from vendors.

Furthermore, the National Quality Dealer will be honored during the NIADA Awards Ceremony.

“Make plans now to join NIADA in Denver in June,” the association said.

More details are at niada.com/convention.