Especially in subprime auto financing, delivering documents such as adverse action notices often is a regular part of doing business for finance companies.

To help with that mandated activity, CEDAR Document Technologies (CEDAR) — an online auto finance mobile loan servicing and multichannel document delivery provider — rolled out of a new service for finance companies in conjunction with browser-based loan origination system operator defi SOLUTIONS.

The companies highlighted this week that the new service can offer seamless integration to securely create and automate email delivery of adverse action letters. For finance companies, executives insisted this integration can offer a lower-cost method of automatically processing mandatory compliance letters efficiently and securely.

Adverse action compliance letters are a standard part of auto finance companies’ ongoing compliance requirements. Companies today can spend $2 or more for each non-approved applicant on processing, paper, envelopes, postage and other delivery costs. This cost can add up quickly, and the process is inefficient and outdated, according to defi SOLUTIONS chief operating officer Georgine Muntz.

“Minimizing lender cost and pain around adverse action letter processing has been a mission of mine for more than 15 years,” Muntz said. “Sending so many letters is environmentally wasteful and receiving them is a confusing and negative experience for consumers.

“I am thrilled to team up with CEDAR to turn this goal into a success for defi lenders,” she continued.

Muntz went on to stress that CEDAR’s deep knowledge of auto finance loan servicing, electronic document creation, storage, processing, and delivery coupled with defi’s expertise in auto lending origination technology makes for an ideal vendor partnership.

“With defi, letters will be generated automatically with the loan decision and securely sent to CEDAR either to mail or email, based on the consumers’ communication preferences. CEDAR is excited to expand its offerings to auto lenders beyond the fully integrated borrower web/mobile portal it offers for servicing auto loan consumers,” said Tom Womble, vice president of account services at CEDAR.

“This is a big win for both lenders and consumers,” Womble added.