Two of the largest and most highly respected recovery organizations merged together at of the end of February, 2013. The National Finance Adjusters (NFA) and the American Recovery Association (ARA) joined into a single large trade association, retaining the name American Recovery Association.
A major merge in the repossession and recovery industries
Together, they have become the repossession and recovery industries’ largest internal trade group. The NFA is the re-marketing component, working to take recovered and repossessed property and finding ways to turn it over. This remarking firm is set up as a business cooperative. This sort of co-op is run and managed by the same small recovery and re-marketing firms that own it. This form allows multiple recovery professionals to pool their knowledge and resources to better serve clients.
ARA – a large organization specialized in finding and repossessing properties
The ARA was already a large organization linking repossession companies and independent repo men. These members specialize in finding and repossessing property for lending and loaning organizations like banks and financiers. The ARA is a nationwide non-profit and all of its members are certified to own and operate their repo businesses.
The effects of the merger
This merger presents a variety of effects on repossession companies in the Unites States. A large, over-arching organization with a prominent presence in the repossession industry will have the power to influence the standards of the industry. Though these organization have not been and will not be unions, in the legal sense, as they grow they will seem to the public like a professional guideline.
Being a member of the ARA will be like a stamp of approval; repossession companies will come with an organizational seal of approval to back them up. If the NFA and it’s pre-exstisting structure have any bleed over effect into the new ARA, the co-op mentality will change the way the repossession companies within such an association deal with each other. Repo companies who buy in, either monetarily or culpably will tend to take their affiliation with ARA more seriously, and will, in turn, commit more time and responsibility to the way the organization is run and the requirements set for involvement.Within this merger, the American Recovery Management Solutions (ARMS) and Reliance, Inc. will also join, by way of the NFA. Some of the expressed goals of this newly combined ARA include an expanded focus on training and education through the application of certification and vocational programs, as well as lender relations. The criterion by which repossession companies set the bar and make choices about hiring, running practices and even financial expectations will now be must more specific and particular.
An improvement of the professionality of the recovery and repossession process
Legal issues and political lobbying, promotion to clients, insurance and professional networking, are topics that the ARA plans to address and formulate group opinions on. With the NFA at the forefront of the lender-repo relationship, they seek to progress the basic business model of property recovery and turn over. Perhaps the first large effect felt of this merger will be the declaration of a newly designed compliance monitoring mechanism that will work for the affiliated repossession companies. What this merger truly accomplishes is a drawing together of different pieces of the repossession agency to improve the professionality of the entire process.