For much of the summer, Re3 Conference panel discussion moderator and Intellaegis president John Lewis has been dissecting the debt collection regulation proposal released by the Consumer Financial Protection Bureau. Lewis compiled a three-segment blog series on Intellaegis’ website, portions of which are on tap to be discussed during this week’s episode of Used Car Week Live on the conference’s Facebook page.
Lewis raised dozens of questions about how the CFPB is going to interpret current statutes — or perhaps even champion a revamp of the Fair Debt Collection Practices Act (FDCPA) that was originally finalized back in 1977. In one of the posts, Lewis made a statement perhaps anyone in an auto finance company’s collection department might make: “One live contact per week, really?”
Lewis insisted that finance companies need to closely monitor and catalogue any attempts to reach defaulted contract holders, which can include efforts in the field by a repossession agent.
“For example, if early stage collection accounts are assigned to a loan servicer, or later stages assigned to a skip tracing firm or post charge off assigned to a collection agency or even a debt buyer, then the first-party lender needs to be using a central repository software that tracks and logs this in an easily auditable format,” Lewis said.
“So, if the customer calls the first-party lender, then the first-party must notify the third-party that contact with the customer has been made and they are not allowed to make or receive calls for a week,” he continued.
Should the CFPB choose to leverage penalties that are possible through the Telephone Consumer Protection Act (TCPA), Lewis pointed out the fine could be $500 per incident if regulators deemed it to be accidental or up to $1,500 per occurrence if determined to be intentional.
“Not having the technology to track these rules does not appear to be an excuse for accidentally,” Lewis said.
In another Intellaegis blog entry, Lewis reiterates a segment of what the CFPB released back in May, which stated:
“The proposal under consideration would require subsequent debt collectors to obtain (and prior collectors to provide) certain information consumers provided to prior collectors that obligates collectors to take or refrain from taking certain action relating to rights arising under certain substantive provisions of the FDCPA and the proposals under consideration.”
Lewis considered the implications of this part of the CFPB proposal.
“To me, this states that all work on any account must be transparent and available to anyone working the account, and that information must be in a system everyone can access, or in systems interfaced where notes and activity from one collector are available to be seen by another collector, even when they work for competing companies,” Lewis said.
“This will be interesting as not every company competes fairly, so will companies document false information to throw their competitor off track? As regulatory compliance weeds out the unscrupulous bad actors in the industry, one would hope that the level of professionalism will rise to a higher standard where everyone will work together in a fair and honest manner, and those who do not will be caught and penalized,” he went on to say.
Lewis’ entire blog series can be found here.
Lewis will also be a part of the Used Car Week Live conversation about this topic and more with conference chair Bill Zadeits and Nick Zulovich, senior editor of SubPrime Auto Finance News and BHPH Report. Used Car Week Live is set to 1 p.m. ET on Thursday and can be seen at www.facebook.com/UsedCarWeek.
Furthermore, Lewis will be hosting his own free webinar with two other experts who are planning to be part of Used Car Week. Lewis will welcome Stephanie Alsbrooks, chief executive officer of defi SOLUTIONS, and Mark Floyd, the former CEO of Exeter Finance and current president of the National Automotive Finance Association. Space is limited for the webinar titled “How to Handle New CFPB Rules In 2017,” which is set for Sept. 22 at 3 p.m. ET.
Registration for the webinar can be completed here.
And for even more discussion about collections, repossessions and recoveries, the Re3 Conference at Used Car Week will bring together more than a dozen experts. The Re3 Conference is set for Nov. 16 at the Red Rock Resort and Casino in Las Vegas. More details can be found at re3.autoremarketing.com.
Rob Ruth carries a lot of weight on his shoulders when he checks on all segments of Bob Ruth Ford, which is located in Dillsburg, Pa. He’s charged with ensuring profitability of the entire dealership, overseeing new- and pre-owned vehicle sales as well as service and parts departments.
“I was born into the car business, and it has been a way of life for me ever since. I most enjoy helping others and making people happy,” Ruth said.
That reference to family is what inspires Ruth to make his store one of the shining stars in the Blue Oval’s network.
“I most admire individuals like my father who came from nothing and worked hard through many different positions in a dealership to eventually own his own store,” Ruth said. “His guts and hard work have given me and the rest of our team of employees a great opportunity to be a part of a successful dealership.”
That success also came when the automotive industry — and the U.S. economy in general — navigated through one of the most challenging times since the Great Depression. And it was through used vehicles that Bob Ruth Ford thrived.
“I am most proud of our achievements during the economic downturn beginning in 2008,” Ruth said. “During this time, our company was able to increase our sales and profitability and to put ourselves in a position for future growth and additional market share.
“Our main focus was to build our pre-owned department to a point where the dealership was able to remain profitable without a single sale of a new vehicle,” he continued. “This proved to me that we were able to adapt and overcome in an environment where most companies were trying to just hang on.”
Rob Ruth, 39, is the vice president/general manager of Bob Ruth Ford.
View entire list of 40 Under 40 honorees.
Bill McCready’s career in the automotive industry began at a Cadillac dealership in Pittsburgh after graduating from college. Turns out, trying to deliver luxury vehicles provided him with a better education.
“I had no idea what I was getting into; I just knew that I needed a job,” McCready said. “I can truthfully say that I learned more about business and sales my first year selling cars than I did all my years obtaining a marketing degree.”
After spending several years at that Cadillac store “and dealing with typical Pennsylvania winters,” McCready moved to South Carolina and landed his first wholesale industry position at Charleston Auto Auction. Now he’s the vice president of operations at Southeastern Auto Auction in Savannah, Ga., overseeing all facets of the operation by directing day-to-day operations to long-term strategic planning
“What I enjoy most about this business is the people and the relationships I have made over the years,” McCready said. I get to work with dealers who have a handful of cars on their lots, to franchise dealers with hundreds of cars, to institutional accounts managing thousands of cars. Everyone has different stories and different personalities.
“I have made friends that I know I will have for the rest of my life,” he added.
That collection of friends includes several who have impacted McCready’s career.
“Although my dad has never been in the car business, I know I would not be where I am professionally if it wasn’t for him and the values he instilled in me,” McCready said. “Another person who I admire and who gave me my first shot in the auction industry is Keith Lelux. He taught me what it takes to run a successful auction and how to grow a business.
Wayne DeLoach, Tommy Childs and Danny Williams, who I currently work with at Southeastern Auto Auction, have recently had a big influence on me,” McCready continued. “Their leadership, dedication and devotion is exceptional. I have been fortunate to have met and worked with many others that I have a great deal of respect for. They are all family oriented, they will not go against their ethical beliefs and they truly care about their employees and their customers.”
Bill McCready, 35, is vice president of operations at Southeastern Auto Auction.
View entire list of 40 Under 40 honorees.
Kelly McAllister described a scenario many young college graduates might encounter. McAllister just collected his degree when a friend mentioned the Manheim Dallas-Fort Worth location was looking to boost its auction sales staff.
Years later and still in the industry, McAllister expressed gratitude for the Manheim site that first hired him.
“Other than someone who inherits the industry as part of their family’s business, I have never met anyone who said that they planned to be in the automotive remarketing or auto auction business,” McAllister said.
“Almost every story I’ve ever heard about how someone ended up at an auction involved some type of temporary employment while they were waiting for a more permanent job opportunity,” he continued. “Then, before they know it, what started as a job becomes a profession.”
McAllister’s current position with XLerate Group means he’s responsible for the development and growth of the company’s presence in nontraditional sales channels. He also helps XLerate’s auctions “step outside of their conventional markets to further their customers’ remarketing success.”
Since beginning work with the XLerate Group auctions, McAllister also noted that he helped to develop their “outside the gate” strategy, resulting in 10 percent of the total vehicles listed on SmartAuction. XLerate Group also claimed the Most Innovative Auction Group Award during last year’s CAR Conference.
“I absolutely admire and respect my employers and co-workers at XLerate Group, especially Cam Hitchcock, Darris McClure and Pat Dudash,” McAllister said.
“I am also grateful for the people I have met throughout my career — Frank Post, Patti Bailey, John Swofford and Jim McAnally, whom I consider my mentor in this industry. Each of these people have helped me in my career and are relationships in this industry I am grateful to have made,” McAllister went on to say.
Now firmly entrenched in the wholesale industry, McAllister acknowledged, “My story isn’t different.”
He continued, “I have noticed that people rarely leave this industry once they have a few years invested. When you’re in, you tend to stay in, and I believe that has a lot to do with how dependent the used-car industry is on relationships.
“The balance between auction and dealer and consignor is unique and sometimes fragile. This business requires a strong commitment to integrity if you intend to be successful,” McAllister concluded.
Kelly McAllister, 38, is director of online business development, XLerate Group.
View entire list of 40 Under 40 honorees.
As the co-founder and chief operating officer of DRIVIN, Justin Mahlik wears a lot of hats, as he leads the strategy, finance and operations of the company.
Mahlik has also helped the company form partnerships in the past year-and-a-half with companies like Black Book, Experian, Polk and Cars.com.
“At DRIVIN, we are addressing a really, really tough problem in the automotive industry, and we are doing it with analytics, technology, human capital and a motivation to partner with dealers and move the industry forward,” he said.
“I am proud of the world-class team we have built across our entire organization, as well as a cultural tenet that the ‘Dealer Partner > Company > Self’ to address the problem,” Mahlik said. “Without these foundational elements, I believe DRIVIN would not have seen the success that we have in such a short amount of time.”
So how did he come to the car business in the first place?
Mahlik said it was somewhat serendipitously.
“I had previously spent the majority of my career in finance, working at a middle market investment bank and at a private investment firm. At the latter, we made and/or oversaw a number of investments in the automotive space,” he said.
“I gained a keen appreciation for the size and complexity of, and most importantly, the opportunity in the automotive industry. When Kayne Grau (co-founder of DRIVIN) and I met with Eric Lefkofsky, Brad Keywell, Andy Intrater and Mitch Golub, financial sponsors, to build our game-plan to provide transparency and process improvement to one of the most antiquated operations inside of a dealership, the opportunity was too challenging to pass up.”
Lastly, we asked Mahlik to name some of the people he has admired professionally. He shared a few, breaking the list down by different categories.
- Mentor: “Brian Clingen, former chairman and CEO of KAR Auction Services, is a great example of someone who is able to clearly see the larger goals and mission of an organization, yet gives managers autonomy when managing their functional areas of expertise, but at the end of the day brings teams together to accomplish their goals.”
- Educator: “Harry Kraemer, former chairman and CEO of Baxter and current professor at the Kellogg School of Management, has had a profound influence on my view of leadership. His values-based leadership and understanding of the character and challenges of leadership are topics I, and fellow Kellogg grads in our organization, try to apply on a daily basis.”
- Family: “I’ve always looked up to my father and his focus on long term goals/success and his ability achieve those goals by leading through commitment — building a shared vision and motivated team, that is committed to the success of the organization first.”
- Colleagues: “I have a deep respect for entrepreneurs and over the last five years in Chicago, it has been exciting to watch many of my friends and colleagues take big risks to address even bigger problems through entrepreneurship. There are too many to name, but their commitment, work ethic and successes have been admirable.”
Justin Mahlik, 35, is the co-founder and chief operating officer at DRIVIN.
View entire list of 40 Under 40 honorees.
Derek Hansen is responsible for developing innovative digital solutions that make it easier for dealers to manage wholesale inventory and negotiate transactions. As a result, two individuals who have impacted Hansen the most specialize in skills necessary for him to do his job successfully.
“There are several people I admire professionally, but it definitely starts with my father,” Hansen said. “My father was an officer in the military, and he was a tremendous example of leadership, discipline and doing things the right way.
“Additionally, Clayton Christensen has been a huge influence in my career, both from his work in consulting and his work studying disruption and innovation,” Hansen continued. “I had the opportunity to meet him during my studies and appreciate the way he looks at business and at life.”
Hansen initially didn’t start his career in the automotive space, but his time in management consulting led to an understanding of various industries. Ultimately, Hansen landed several projects associated with vehicles.
“Once in the car business, I was hooked,” he said. “I love the fast-paced nature, the innovation and disruption that is occurring. There is an opportunity for businesses to drive growth as they improve the way cars are bought and sold.
Now Hansen has what he enjoys, an important position within Cox Automotive’s machine at Manheim.
“There are several parts of my career that I am proud of including what we have been able to accomplish as a team this year at Manheim Digital,” Hansen said. “However, if I were to call out what I am most proud of at this point, it would be contributing to the formation of the growth strategy of Cox Automotive.
“The opportunity to work with a great team and across all aspects of the industry where Cox Automotive has a presence has been one of the highlights of my career,” he went on to say.
Derek Hansen, 36, is vice president, digital inventory solutions at Manheim.
View entire list of 40 Under 40 honorees.
Cox Automotive leveraged several executives to finalize its $4 billion acquisition of Dealertrack Technologies last fall. Tish Harrison was one of them.
“I am most proud of my work with the Cox Automotive deal team for the Dealertrack acquisition. As a result of my involvement, I worked alongside some extremely talented people,” Harrison said.
“It was one of those rare chances to be a part of something that would have a huge impact on the industry as well as a historic moment for Cox Automotive and Cox Enterprises — the largest transaction in company history,” she continued. “It was one of the most challenging yet rewarding experiences in my career, and certainly one that I’ll never forget.”
Now about a year after the deal closed, Harrison leads an internal, six-member market consulting team supporting the Inventory Solutions business within Cox Automotive. That group is responsible for performing business analyses and identifying market opportunities where “we serve up insights impacting the development of marketing, sales and operations strategies that support the company’s business objectives and growth initiatives,” according to Harrison.
Being a part of multi-billion dollar deals isn’t the only subject Harrison finds intriguing and rewarding.
“As far back as I can remember, I’ve always loved cars,” Harrison said. “During road trips with my family, I’d entertain myself by guessing the model year of cars based on the trim, wheels, etc. (I am an only child and had to get creative about passing the time).
“What I love most about the industry is how it greatly contributes to the overall global economy and provides a mean for so many people to provide for their families,” she continued. “I also enjoy watching the business transform at such a rapid pace.”
And speaking of family, Harrison mentioned she admires her mother, touching on the reason why.
“She is a nurse who was (and still is) an awe-inspiring image of excellence and work ethic,” Harrison said.
“I also admire all of the women in the business that have broken down barriers and reached new professional heights,” she went on to say. “It is encouraging to see so many women in various leadership roles in numerous companies throughout the industry.”
Tish Harrison, 35, is director, market consulting with Cox Automotive.
View entire list of 40 Under 40 honorees.
Following a study conducted by the Best Companies Group, Auto Remarketing has announced the honorees in the inaugural Best Auto Auctions to Work For.
Auto Remarketing, teaming with Best Companies Group (BCG) in Pennsylvania, underwrote the workplace study.
BCG staff administered all of the surveys, then analyzed the data from the group of auctions choosing to participate and developed metrics and standards based on that data to determine which auctions would be named to the list of Best Auto Auctions to Work For.
It’s either pass or fail, and ONLY those auctions that passed were included in the results, which are unranked.
For an auction to have been considered, the general manager/leader of the auction had to opt in.
Manheim and ADESA supported and participated in the Best Auctions study by including a sample group of their auto auction locations from across the country.
“Congratulations to everyone earning Best Auto Auctions to Work For. It’s a great accomplishment and something you should take pride in,” said Auto Remarketing publisher Bill Zadeits. “We would also like to thank all the auctions who participated and the Best Companies Group. This is a great list of leading auto auctions and we hope we can build on it for years to come.”
The 2016 Best Auto Auctions to Work For honorees are listed below, alphabetically:
The month of June has kicked off with our team moving full-speed ahead with planning and prep for this year’s
Used Car Week, which will be held Nov. 14-18 at the Red Rock Resort in Las Vegas.
Each year at Used Car Week, the unique market conditions within the used-car industry drive the content, as do the various vendor participants, corporate and association partners, and others who will make Red Rock their home for the week.
This year, I anticipate that one major topic will be the catalyst for discussion and debate both on and off the stage: supply surge.
Even as you read this, there are thousands of used vehicles pouring through traditional auction lanes, digital marketplaces and disruptor remarketing channels into dealer inventory.
Serious questions remain as to how this significant increase in inventory will be managed and how the industry can facilitate the sale — or lease — of these used vehicles to consumers. And serious questions have a way of eliciting serious answers.
As the early agenda comes into focus, the faculty of speakers, panelists and presenters from all corners of the used-car industry is impressive.
At the CPO Forum, America’s Used Car Conference, the data, analytics and information related to supply, pricing, wholesale acquisition and retail sales strategy will provide valuable insights for dealers, OEM and other executives, arming them with an advantage to close the year strong and open 2017 with a head start on their competition.
The SubPrime Forum, in partnership with our colleagues at the National Auto Finance Association, will deliver an unmatched opportunity for auto finance executives across all spectrums to learn, network and return to their offices smarter and better prepared than ever before.
I certainly expect the same with our Re3 Conference. Repossessions and recoveries are such an integral piece of the auto finance and remarketing puzzle, and this segment of Used Car Week has continued to grow in value and importance to the industry.
This year marks the first for the combined meeting of the National Remarketing Conference and the National Auto Auction Association Convention. The planning for this combined event is moving along smoothly, and I credit my staff as well as the Frank Hackett-led NAAA team for making terrific progress in such a short amount of time.
The industry estimates that by combining the NAAA events with Used Car Week, the cost savings in travel, time, lodging, food and more may climb into the millions of dollars. For so many of us who genuinely enjoy the time we spend with colleagues and appreciate the advantage in-person meetings and conversations have for our business relationships and profitability, this is an amazing opportunity.
The NAAA-member auctions, the parent and sister companies, the associate members and more play an important role in the automotive industry, and these businesses continue to be the strength and foundation of the auto remarketing industry.
Saving time, money and providing great value has been at the heart of the auction business since day one. And as the NRC and the NAAA join together, we stay true to that goal by helping the industry save money in expenses, travel time and more.
Supply surge. No doubt about it, it’s here. Be sure you’re better prepared than your competitors to take advantage of the market opportunity for your company and your career.
We want to partner with you to help make that happen. Make plans now to join the smartest people in the industry at Used Car Week in November.
Melinda Zabritski watched her credit-market workload at a previous post steadily increase with responsibilities in the automotive space. The topic, as well as the people connected to vehicles and how they are financed, prompted Zabritski to seek her current position as senior director of automotive finance at Experian Automotive.
“No offense to other areas of the credit market, but credit cards don’t bring back memories and inspire. Cars, now cars are exciting. Providing insights to help consumers drive away in their dream car, that’s something to pursue,” Zabritski said.
And while she regularly works through enough data to fill an SUV’s cargo area full of hard drives, it’s the opportunity to connect the people to those data points that stirs Zabritski, a 2016 Women in Remarketing honoree.
“I enjoy the passion that is found in this industry and the ability to work across all aspects of this market,” she said. “It’s interesting to be able to view the industry across the entire lifecycle from dealers to lenders to remarketing professionals we all seem to share the same passion for the industry.”
While Zabritski travels the country meeting with clients and industry groups to share Experian’s information, another opportunity she called one of her greatest career highlights is becoming a regular on the morning news program televised by CBS. Zabritski also flourishes in the role of explaining what trends in the auto finance space might mean to the family watching TV while preparing for the day.
“For years, I was frustrated by always hearing people from outside the industry provide credit advice and information. I always felt this information should come from within the industry and finally it happened,” she said.
Whether it’s speaking to parents, dealer principals or finance company executives, Zabritski pointed out the access to information and complexity of analysis are the components of her job responsibilities that has changed most during the past 15 years.
“In a world of Big Data, we’re seeing lenders increase their level of sophistication when it comes to making decisions,” she said. “Whether it is reviewing demographics and targeting new customers or analyzing financial performance trends across a portfolio or reviewing vehicles in operation statistics, data and insights are the keys to understanding the market, the vehicles and the people who buy them.”
“Knowing that so many consumers and industry professionals rely on our data, information and insight to make smarter decisions, makes me strive to provide the best products and services out there,” Zabritski added.
When not scouring data for the latest trends, Zabritski has a bit of an agriculture hobby. “When I’m home, I enjoy my garden and chickens; yes, I have three backyard chickens,” she said.
Traveling is another of Zabritski’s passions, as she makes multiple trips to Europe each year. She recently completed the Cotswold Way, the 102-mile walking trail in England and is looking to spend time in Paris after Used Car Week.
Check out the April 15 edition of Auto Remarketing to learn more about the entire class of 2016 Women in Remarketing honorees.
These outstanding leaders will be honored at Used Car Week 2016, where we will be launching our National Remarketing Conference partnership with the National Auto Auction Association.
Used Car Week is scheduled for Nov. 14-18 at the Red Rock in Las Vegas.
