The leadership at Recovery Industry Services Co. (RISC) heard panel discussions and networking dialogue from industry participants during Used Car Week about the importance of compliance for third-party vendors. The situation reinforced why RISC rolled out its latest offering on Tuesday.
RISC’s Lot Inspection Service includes current reports on more than 1,500 recovery companies that collectively operate more than 3,000 recovery storage lots nationwide. Together, RISC estimated these lots store more than 95 percent of the repossessed vehicles recovered throughout the United States each year.
“Regardless of a lenders assignment strategy, annual inspections can be difficult to schedule, perform and maintain. In turn, the repossession company gets inundated with inspection requests from forwarders and lenders taking valuable time away from repossessions they need to perform,” RISC founder Stamatis Ferarolis said.
“This coupled with variations in reports drove the initiative for RISC to perform and maintain standard lot inspections across the country,” Ferarolis continued.
RISC’s Lot Inspection Service includes:
—Key storage and security
—Personal property security
Ferarolis emphasized that two industry problems are solved with this solution.
First, the finance company can be alleviated from managing this portion of the vendor vetting process mandated by the Consumer Financial Protection Bureau.
Second, the recovery agency is relieved of the burden of having multiple lenders inspect the same lot.
“RISC’s Lot Inspection Service saves time and resources for all parties,” Ferarolis said, “and provides the lender with a single source to quickly, and economically, gain access to current, comprehensive lot inspections on every lot in which a consumer’s vehicle may be stored.”
Inspectors must complete Inspector Education, RISC’s proprietary training program. This training was developed specifically for repossession lot inspectors to ensure an objective report of the property. Each report is accessible online so it is easy for lenders to gather the necessary documentation required by auditors or third party regulators such as the CFPB.
Between now and the end of the year, finance companies can take advantage of RISC’s free vendor compliance analysis. This vendor analysis will provide the lender with a snapshot of their vendor’s compliance status, which will include information on lot inspections as well as business license, insurance, background checks and other vital compliance data.
To sign up and get your free analysis, go to www.riscus.com.