The American Recovery Association published a new whitepaper on Wednesday, attempting to clarify what the organization called misclassifications by finance companies and third parties of what constitutes a repossession and what is simply a vehicle tow.

ARA began the whitepaper by writing it “asserts that any vehicle secured prior to the full term of a vehicle installment loan constitutes a repossession. Efforts by lenders or third-party service providers to misclassify these recoveries as ‘tows’ or similar designations are disingenuous and undermine transparency, consumer trust, and professionalism within the auto finance and recovery industries.

“This whitepaper aims to highlight the importance of accurate repossession classification, the risks posed by improper practices, and the need for industry-wide integrity and fairness,” the association continued.

In the document titled, “Repossession Classification, Consumer Protection, and Industry Integrity,” ARA articulated numerous factors associated with consumer privacy risks and the need for proper vetting and standards.

The association then closed with a four-part call to action, which included the elimination of what it called “double standards.”

ARA wrote that it “urges the industry to establish a level playing field by holding all participants to the same standards. Forwarders, direct agents, and other service providers must be equally accountable for meeting compliance, insurance, and certification requirements.

“Allowing non-compliant actors to bypass these standards creates inequity, erodes consumer trust, and diminishes the reputation of the repossession industry,” the association added.

ARA closed by emphasizing, “Misclassifying repossessions as ‘tows’ or similar terms undermines transparency and trust, while the use of unvetted and non-compliant service providers compromises the safety and integrity of the process.”

The entire ARA whitepaper is available here.