The American Recovery Association and National Finance Adjusters have recently merged into one trade association.
The new trade association will move forward under the name of the American Recovery Association.
As part of the comprehensive merger agreement, American Recovery Management Solutions joined with Relliance Inc. to form the largest industry-owned forwarding and facilitation cooperative in the U.S., the organizations said.
The co-op will be named National Finance Adjusters.
The new trade association, ARA, said it will focus on compliance training and monitoring, education and training through certification programs, legal representation and lobbying, promotion of member and lender direct relationships, networking, and a captive insurance program.
ARA members specialize in locating and repossessing collateral on behalf of lending institutions including banks, savings institutions, finance companies, credit unions, rental/leasing companies and auto, truck and equipment dealers.
NFA, the co-op, said it will focus on offering the lenders a viable alternative to the standard forwarding model, while regaining market share lost to the national forwarding companies.
In addition to a centralized assignment, communication and accounting, and risk mitigation, lenders will have the option of communicating directly with the agent if they choose.
NFA is structured as a business cooperative, which means that it's owned and managed by a professional group of independently owned recovery and remarketing firms, aligned to build a quality-based option to current forwarding companies.
The home office of the newly formed ARA will remain in Dallas and the corporate office of the co-op will be located in Scottsdale, Ariz. Membership into ARA will be required to join the NFA co-op, the organizations said.