HNS Recovery Sounds the Alarm: Repossession Agencies Bleed Millions Due to Wrongful Repossession Suits Caused by Client Negligence

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Aug 23, 2024, 12:00 ET

PLANO, Texas, Aug. 23, 2024 /PRNewswire/ -- HNS Recovery, a leader in the repossession industry, is issuing a rallying cry to all repossession agencies nationwide to unite against the rising tide of costly and unjust litigation stemming from wrongful repossession suits. As it stands, repossession agencies are being dragged into court and forced to spend millions of dollars on legal fees, simply for executing repossession orders issued by clients. These orders, often riddled with errors or issued without proper verification, are placing the very survival of repossession agencies at risk.

This crisis is not of our making. Repossession agencies operate on the orders provided by clients, who bear the sole responsibility of ensuring the validity of these orders. Yet, when a repossession is challenged as wrongful, it is not the negligent client who shoulders the burden—it is the repossession agency, the very party that has acted in good faith and in full compliance with the law.

"This is an outrage," said Mike Aghyarian, CEO of HNS Recovery. "Repossession agencies are not in the business of adjudicating the validity of repossession orders and there are currently no avenues for verifying the debt. The same goes for the verification of active-duty service members who are on deployment. These are orders that we should not receive. We are service providers who act on the instructions given to us. And yet, we are being forced to pay the price for the negligence of others. This cannot continue."

The financial toll is staggering. Millions of dollars are being siphoned from our industry, not because of any wrongdoing on our part, but because the current legal framework unfairly targets those who are easiest to blame—the repossession agencies. As a direct consequence of these frivolous lawsuits, insurance costs have skyrocketed, further squeezing our industry and threatening the viability of our businesses. This must stop. The legal system must recognize that repossession agencies cannot and should not be held liable for wrongful repossessions that occur because of invalid orders issued by clients.

HNS Recovery is demanding immediate and decisive action. We need to unite, now more than ever, to demand legislative change that will put an end to this insanity. The law must be amended to explicitly protect repossession agencies from being held liable for wrongful repossessions caused by invalid orders. The negligence of clients cannot be allowed to continue to destroy our businesses.

As a first step toward achieving this crucial change, Mike Aghyarian, a key figure in the repossession industry, is already working to secure a meeting with Texas Governor Greg Abbott. This meeting will focus on taking a hard look at current state legislation and laying the groundwork for a path forward to federal legislation that will protect repossession agencies across the nation. The time for action is now, and we need strong leadership and swift legislative changes to protect our industry.

"We must stand together," continued Mike Aghyarian. "If we do not act now, we risk the future of our businesses and our industry. It's time to demand the protection and fairness we deserve."

HNS Recovery urges all repossession agencies to contact their local representatives, join industry coalitions, and make their voices heard. Together, we can push for the necessary legislative changes that will safeguard our industry from the negligent practices of clients.

About HNS Recovery

HNS Recovery is a leading repossession agency committed to providing professional, empathetic and compliant repossession services. With years of experience in the industry, HNS Recovery prides itself on its integrity, efficiency, and dedication to upholding the highest standards of service.

SOURCE The Car Source dba HNS Recovery