For auto finance providers still unsure about the value of its vehicle location data, Digital Recognition Network (DRN) highlighted the experience of just a single client — Philadelphia Federal Credit Union (PFCU).

PFCU is an early adopter of DRN’s enterprise subscription for auto finance, DRNsights. Here is a breakdown of what happened to this credit union in a single month.

PFCU had 19 vehicles assigned to repossession. Using DRNsights to make contact, the credit union cured 11 installment contracts and repossessed two vehicles, saving more than $150,000 in potential losses.

DRN insisted that users such as PFCU report more cured installment contracts and fewer charge-offs resulting from improved auto debt collection and recoveries. PFCU uses DRNsights in early stage delinquency to find new locations for making right party contact to collect and cure contracts, and also uses the data and analytics at repossession for faster recoveries, saving time and money.

PFCU averages 15 to 20 vehicles assigned to repossession every month.

“Like many credit unions, we had been using DRN’s data to improve our recovery rates, waiting until late stage delinquency to apply the data. And it worked,” said KellyAnn Forrest, asset recovery and collections specialist for PFCU. “Not only were we recovering more vehicles, but we were recovering them faster. And faster recoveries mean higher value of the collateral.

“But then we learned that we could use that same data in early stage delinquency to help us make right party contact through the DRNsights subscription,” Forrest continued. “The impact has been remarkable — we are making better decisions sooner and that means added savings on loans that are cured, dollars not wasted on repo, or faster repos to avoid charge-offs and retain more collateral value.”

By applying DRNsights at early stage delinquency, DRN vice president of financial services Jeremiah Wheeler highlighted that a wide array of clients are reducing the number of vehicles that go to repossession and are curing more installment contracts.

“PFCU began using DRN’s vehicle location data at recovery when vehicles were out for repossession. It quickly became apparent that the data and analytics could add tremendous value to their collections process simply by using the data at early stage collections. That pivotal change enables PFCU to make right party contact faster using new DRN locations. More contact means more cured loans and fewer repos for PFCU,” said Wheeler, who also elaborated about the capabilities during a recent webinar with SubPrime Auto Finance News that’s available here or via the window at the top of this page.

Vehicle location data from Digital Recognition Network is geared to revolutionize the repossession industry by helping finance companies recover up to 35 percent more vehicles and avoid charge-off losses. DRNsights leverage DRN’s vehicle location data and analytics to help lenders better understand their customer’s needs, provide new locations for making right party contact, enable faster recovery and reduce charge-off losses. The vehicle location data is gathered 24/7, 365 days a year nationwide through license plate recognition (LPR) technology.

DRN’s nationwide coverage, with more than 6 billion vehicle sightings, includes the date, time and location of each sighting. This data can provide alerts of possible risk, protection from lien losses, new locations for making contact on 40 percent or more accounts, the ability to collect earlier to reduce charge-offs, and a 50 percent reduction in the days to recover vehicles out for repossession.