Vaughn Clemmons might not be an attorney, but the president of the American Recovery Association urged members to use caution when receiving client directives.

“Whether from lenders, forwarders, or others, some instructions could place your business or employees in legal jeopardy,” Clemmons wrote in a recent industry message. “The American Recovery Association will never support client instructions that require agents to violate local, state, or federal law or expose members to unnecessary legal risk.”

Clemmons pointed out that settlement costs are rising, with many reaching $10,000 to $30,000 or more.

“You bear the financial burden when legal claims arise,” Clemmons wrote. “Agents often carry the full cost regardless of where the instruction originated. This poses a serious risk to recovery businesses nationwide.”

Clemmons said the ARA is actively working at the national level to demand clearer protections and indemnification language that shields agents from exposure.

“We are committed to holding lenders, forwarders, and industry partners accountable to ensure agents are protected and responsibility is properly shared when questionable instructions lead to legal or financial consequences,” he said.

In the meantime, Clemmons suggested that ARA members take these steps:

—Stay informed and follow the law

—Carefully evaluate any directive that feels questionable

—Reject instructions that put you, your business, or your team at risk

“Contact us if you have concerns or need guidance. Protecting our members remains our top priority,” Clemmons said.

For more details, go to www.repo.org.