PHOENIX -

The Arizona Independent Automobile Dealers Association (AIADA) is continuing to ask state lawmakers to halt progress on a proposal that would eliminate what the organization said “is a last-resort tool important to every BHPH dealer in Arizona.”

BHPH Report recently received a message about AIADA’s activities in connection with House Bill 2348, which would repeal Arizona Revised Statute 13-1813 that allows a finance company to report a vehicle stolen if a consumer is in default for more than 90 days and hides the vehicle from the secured creditor.

After making it through the Arizona House by a vote of 59-0 back in February, the proposal currently is sitting with the state Senate’s Judiciary Committee, which chose to conduct further discussion about it on Thursday.

That message from AIADA also contained a letter the association wrote to Sen. Nancy Barto, who is vice chair of the Judiciary Committee. AIADA began its argument to Barto by emphasizing the statute “is not used as a tool to make police the repo man or make them solve civil matters.”

The AIADA continued, “The truth is the vast majority of consumers who fall behind on their vehicle loans have their vehicles repossessed civilly, often voluntarily, at reasonable costs. Of those few consumers who do fall many months behind, and do receive letters warning about class six felony consequences, most cooperate to voluntarily surrender their vehicles civilly.”

Should this statute be eliminated, AIADA explained to Barto that Arizona buy-here, pay-here dealers would be required to secure a police report in addition to a summons, potential warrants, arrests and hearings in order to repossess a vehicle.

“The net result is more work for police including serving warrants and testifying, significantly more costs to the creditor, potential arrests for the defaulted consumer and significantly more time for the court system when all the creditor wanted was their vehicle back,” AIADA said.

The association went on to explain what it called “a mischaracterization” of the statute use when the Arizona House Judiciary Committee conducted its hearing about the proposal.

“Police departments often refuse to file police reports … because, in their opinion, it is just a civil matter,” AIADA wrote to Barto. “Their choice to not uphold the law lets consumers in default walk away from their loans while still maintaining possession of the vehicle.

“This hurts creditors, many of which are small mom and pop businesses and sends the wrong message to people with criminal intent,” the association added.

AIADA suggested that the Arizona Vehicle Theft Task Force (AVTTF) could serve as the central clearinghouse for all vehicles reported stolen under this particular statute. The association also pledged to make education and training is available to BHPH dealers in Arizona “so that they can more effectively file complaints as required by law.”

AIADA added in the letter that it was not contacted before state lawmakers introduced the proposal that also has been supported by several municipalities, including:

• City of Chandler
• Town of Gilbert
• City of Tucson
• City of Mesa
• City of Coolidge
• Town of Paradise Valley
• City of Yuma
• City of Surprise
• Town of Marana
• City of El Mirage
• City of Temp

“Our auto dealers are one of the largest stakeholders associated with 13-1813, and our dealers do business in every city that signed on in support of this bill,” AIADA said.

“The fact that our own local governments didn’t contact us on this issue is disappointing, to say the least. Repealing 13-1813 is not the answer and throws the proverbial baby out with the bathwater,” the association went on to say before adding that it hopes lawmakers can “craft a more well-rounded solution during the off-session.”

More details about AIADA’s efforts can be found at aiada.net.