Urgent Industry Update

February 6, 2026 - Ignite has learned that Senator Elizabeth Warren, in her role as Ranking Member of the Committee on Banking, Housing, and Urban Affairs, has sent letters to ten large BHPH Operators and two industry associations requesting information and data regarding repossessions, specifically on their practices to avoid errors and information on errors that have occurred in the last four years. Yesterday, NIADA also published a statement that it received a similar letter.  

Thoughts on the Letter

The letter I had an opportunity to review attacked the Trump Administration's efforts to deregulate the CFPB and expressed concern over the current economic conditions and its impact on consumers. Indeed, the letter states that "the default rates on car loans are increasing at a nearly identical pace to default rates that lead up to the 2008 financial crisis". It also cites that "having a car repossessed is a devastating and deeply disruptive experience". 

 Alarmingly, it also contained incendiary allegations that "There is also evidence that repossessions are built into BHPH dealers' business models" (citing a much maligned 14 year old article from the Los Angeles Times) and that "defaults and repossessions may actually be more beneficial to BHPH dealers than a consumer's successful completion of all required payments" which allegation was taken from a comment published by the Center for Responsible Lending.  

Needless to say, anybody that's spent some time in the independent and BHPH car sales and finance industry has encountered these inflammatory criticisms before. I've spent a career defending car dealers from these and similar attacks that are unsupported by data and lack a clear understanding of how the vast majority of such businesses operate. Unfortunately, I'm sure this won't be the last time someone in a position of power makes these comments.

The Information Being Sought

For the purposes of this update, I think it is important to familiarize the greater industry on just what information Senator Warren is seeking. The list is quite lengthy and covers a four year period, but here are some key requests:

• How many personal automobiles have been repossessed or ordered to be repossessed
• How many repossession assignments were issued
• How many repossession events involved towing or an attempt to tow the incorrect automobile due to an error by employees or contractors or that was later determined to be an error by an outside entity
• How many repossession events involved a consumer making a formal or informal complaint or claim that the repossession was in error
• On an annual basis, what are the most common reasons consumers believe the repossession to be in error and how such situations were resolved
• How are situations handled where there is a dispute between the company and the consumer about the terms of an agreement, particularly following a loan modification or other arrangement
• How many repossessions occur where a consumer has made a formal or informal complaint or claim that there was a material problem with the underlying transaction
• Information about the use of GPS and starter interrupt devices
• What policies are in place to address repossessions made in error and how situations are handled where the customer believes a repossession occurred in error or if the consumer complained that there was a a material problem with the underlying transaction
• What policies, manuals and training exist for personal property that is in a repossessed automobile

What Happens Next?

It will be up to each letter recipient to confer with qualified experts and decide how to respond. While it is certainly desirable to take an amicable approach when dealing with a U.S. Senator, it is important to note that this is a request, not a subpoena. Also, to my knowledge, the letter provides less than two weeks to respond to requests that in my former life in litigation would be objected to as an "overly broad fishing expedition." Further, while Senator Warren is the Ranking Committee member, she is not the Chairman, which is a position now held by Republican Senator Tim Scott of South Carolina.  

I was involved in a similar situation several years ago when a Senator used these types of tactics to attack GPS devices. At that time, my client chose to share information on its practices that were sufficient to familiarize the Senator with the subject, while not providing data or producing the requested documents. At that time, we also worked with NIADA to meet with the Senator's staff and discuss their concerns. I can only hope that Senator Warren is willing to take an amicable approach and be open minded to learning the subject matter instead of attacking hard working businesses that choose to take on business risk that is foreign to most.

What Should BHPH Dealers Be Doing - KEEP CALM & CALL IGNITE

KEEP CALM & CALL IGNITE. You aren't alone in this fight. My career has been devoted to protecting car dealers and other industry participants and the Ignite team is here to help. We put you in the best position to prevail by:

• Creating policies
• Training your team
• Reviewing your deals, practices and documents
• Addressing regulators or litigation claims, 

I have a concern that consumer advocates like Senator Warren won't limit their attention to repossessions. In my view, the other side of the coin involves questions about fair lending, underwriting and how the applicants' ability to repay is analyzed before the credit decision is made. In my experience, these consumer zealots firmly believe that car dealers put some buyers in a position to fail. It's imperative that Dealers prepare themselves because the next letter or door knock may be yours.

Contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call me at (817) 803-3143.

Steve Levine/Owner