Industry News
ARA Urges Immediate Industry Action as Fuel Costs Push Recovery Agencies to the Brink
Source: CURepossession · May 11, 2026
The American Recovery Association issued a formal advisory on May 11, 2026 urging lenders, forwarders, and industry partners to recognize the growing operational strain that record fuel prices are placing on repossession and recovery agencies nationwide. Diesel fuel has exceeded $7.00 per gallon in many markets, a level the ARA describes as unsustainable for most recovery operations, driven by global instability, supply shortages, and ongoing transportation disruptions. The advisory arrives at a particularly difficult moment: assignment volume has simultaneously slowed, with accounts now being held at 90–120+ days before lenders place them for recovery — compressing agency revenues from both sides of the equation. ARA raised these concerns directly with lenders and forwarders at NARS 2026 in April, with the most common response being that they are reviewing the data. Recovery agencies face compounding pressure of historically high per-unit operating costs against a shrinking flow of assignments.
What This Means for Repo Ops
Recovery agencies running fee structures set in a lower-fuel-cost environment need to model current per-unit margins immediately — if your rates have not been renegotiated since 2024 or earlier, you may be absorbing fuel costs that have more than doubled. Use this ARA advisory as documented leverage in fee renegotiation conversations: the association has formally elevated the issue and is building an industry-wide record of lender non-response. Agencies in markets above $7/gallon diesel should assess break-even assignment volume at current rates and consider narrowing geographic footprint to concentrate on the most fuel-efficient assignments until rates are adjusted.
Repo Ops Alert · May 25, 2026 · Industry News
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