Recovery

As Intellaegis, which does business as masterQueue, gears up for a potential award-winning appearance at the Finovate Fall conference in New York this September, the company announced an executive adviser joined the team, bringing a diverse technology background.

Intellaegis’ newest executive adviser is Victor Kan, former president and chief executive officer of Fujitsi Computer Products of America, the U.S. division of the world’s seventh-largest IT services provider.

Intellaegis highlighted Kan is a tenured Silicon Valley veteran with more than 25 years of executive leadership in sales, marketing and product management.

Kan started his career at Fujitsu of America in 1999 as senior director of product and channel marketing, culminating in his promotion to president and CEO in 2012.

“While we’re honored to bring in a person with the track record Victor has, what’s even more exciting is his desire to get in the weeds at an entrepreneurial level and roll up his sleeves in a very modest, matter-of-fact manner that we believe will help our organization continue our upward growth pattern well beyond what we have projected for 2020,” Intellaegis founder and chief executive officer John Lewis said in a news release.

Kan explained why he decided to become an executive adviser to Intellaegis.

“After meeting with the co-founders of Intellaegis, John and Perla Lewis, I was captivated by the energy and passion they displayed in transforming their years of experience in skip tracing and debt collections into a thriving and cutting-edge software business,” Kan said.

“masterQueue is a unique product solving a real need, and I’m excited about the opportunities for the product in the marketplace and was ecstatic to accept their offer to join the company,” Kan continued.

The company’s offerings are impressing other industry leaders, too, as Intellaegis was named a finalist in two fintech award categories for the upcoming Finovate conference.

Intellaegis is also one of 75 fintech companies selected as a presenter to showcase the features that generated these nominations during the two days of demos of the newest fintech products at the event. The opportunity marks the second appearance for the company at this conference. Intellaegis also appeared at Finovate in 2011 when it launched masterQueue.

The masterQueue fintech platform is used to help financial institutions and their third-party vendors automate the process of contacting customers who have fallen out of touch

“This allows financial institutions and their customers an opportunity to re-establish broken communication to help resolve past due account issues before the situation becomes further delinquent and more serious,” the company said.

Intellaegis explained the features masterQueue built into its debt-collection platform can create efficiencies utilizing automated data processing power that can streamline a time-consuming manual process better known as skip tracing.

masterQueue can automates this process while at the same time simultaneously layering in the various regulatory and data privacy laws to ensure the multiple and complex state and federal compliance requirements needed for accessing and using consumer data in debt collections can be met, providing CCPA and FDCPA solutions for the debt collections industry.

These regulatory features were architected by a combined effort from a Fortune Top 100 financial institution and the team at masterQueue. This resulted in the two nominations at Finovate for Best FinTech Partnership and Best RegTech Solution.

For more information, contact masterQueue at sales@intellaegis.com or (866) 563-7547.

About a month after rolling out its “mobile only” policy, ALS Resolvion announced this week that the skip-tracing and repossession management firm completed the integration between its proprietary operating system (Wombat) into the forwarder platform fueled by Recovery Database Network (RDN), which is a division of KAR Auction Services.

ALS Resolvion chief executive officer Michael Levison said in a news release, “This is a big step forward for us.

“We have been integrated into the lender side of RDN for years. However, this new integration completes and creates real time connectivity to the agent side of RDN, which is the system of record for a large percentage of our repossession agency partners,” continued Levison, who is slated to be among the speakers during Repo Con, which is part of Used Car Week that runs from Nov. 11-15 at the Red Rock Resort in Las Vegas.

Back in July, ALS Resolvion said under its new policy, the company will provide involuntary repossession assignments only to repossession agencies that are deploying mobile technology at the repo truck level.

And now it’s fully integrated with RDN. 

“This integration accomplishes a number of important objectives for both our company and our clients," ALS Resolvion post repossession operations manager Danny Mullen said.

“In addition to creating significant operating and communication efficiencies with our agency network, it also greatly strengthens our overall compliance program as it allows us to change case status in real time in the agent’s system of record,” Mullen added.

From RDN’s perspective, the integration development also is positive.

“We continue to invest in enhancing the level of connectivity with agency users,” said Justin Zane, chief executive officer of RDN and Clear Plan.

“ALS Resolvion is a major source of business for many of our users and this new functionality will significantly increase the efficiency and compliance profile of those relationships," Zane went on to say.

The American Recovery Association is looking to help members with one of the most important benefits repossession agencies can offer their employees.

This week, ARA, in partnership with Harding Brooks Insurance Agency, announced the newest member benefit: a national, cost-effective health insurance program open to all members.

“A rich benefits package is key in retaining quality employees and obtaining health insurance for small businesses has not always been an easy option,” ARA president Dave Kennedy said in a news release. “ARA is always working to find ways to add value to our membership, and we are thrilled to now offer a cost-effective insurance program for the recovery industry.”

Harding Brooks will serve as ARA’s one-stop-shop in an effort to ensure members are getting the best rates possible. This includes educating ARA members and staff on coverages, deductibles and co-pays while putting together the best plan from top healthcare providers across the country.

“Harding Brooks is excited to offer an exclusive health care policy for the collateral recovery industry,” said Mike Peplinski, vice president of Harding Brooks Insurance Agency. “I’d like to thank ARA for their assistance, which was instrumental in this process.”

Members should contact Peplinski at Harding Brooks at (315) 214-5822 to discuss which health care plan is the best option for their company and employees.

ARA also recently announced a guaranteed $10,000 ($20,000 accidental death, no questions asked) life insurance policy that covers every executive member, and coverage is available for all employees at cost.

More offerings are expected to roll out in the coming months, ARA said.

ALS Resolvion is reinforcing its commitment to being a mobile company, citing two specific reasons for an updated strategy.

The provider of national repossession management services recently announced that it has fully implemented what the company believes is the industry’s first “mobile only” policy.

Under this new policy, ALS Resolvion said it will provide involuntary repossession assignments only to repossession agencies that are deploying mobile technology at the repo truck level.

The company explained its “mobile only” policy is intended to address two of the most challenging remaining compliance issues surrounding the repossession process:

1. The ability to communicate changes in case status in real time down to the repo truck level. 

“Many of the unintended repossessions that take place today are the result of a lender closing a repossession assignment but notification of that change does not make it to repo truck driver before the vehicle is recovered,” ALS Resolvion said in a news release. “This specific issue has been a key focus of the CFPB as it reviews lender repossession practices.

2. When a vehicle is repossessed, the finance company needs to know immediately in order to update its records. 

“If a customer makes payment before the lender knows the car has already been repossessed, problems can ensue,” ALS Resolvion added. “Real-time communication of the repossession helps mitigate this risk.”

ALS Resolvion chief executive officer Michael Levison elaborated about this decision.

“For the first time, regardless of the repossession management system a lender uses, we can provide real time communication to our entire agent network down to the truck level,” Levison said.

“This is the first time that a forwarder has been able to offer this capability to lenders and it could only be accomplished through a series of complex integrations between multiple systems that we have now completed,” he continued.

ALS Resolvion repossession manager Danny Mullen added, “The issue of unintended repossessions is at the top of the priority list for regulators that monitor repossession activities. 

“While our mobile only policy does not necessarily guarantee that there will be no unintended repossessions due to communication gaps, it is a big step in that direction,” Mullen went on to say.

On Tuesday, KAR Auction Services shifted an executive from AFC to a role with PAR North America.

According to a news release, PAR announced Drew Shull was named vice president of sales and client experience.

In his new role, the company said Shull will focus on enhancing PAR’s client experience and product offerings, while leading the sales team. He and the sales team are responsible for executing on the company’s overall strategy, which includes implementing client retention initiatives, driving results and expanding PAR’s product portfolio.

PAR is a leading U.S. provider of vehicle transition services with coast-to-coast solutions for recovery management, skip-tracing, remarketing and title services. This appointment aims to help create new client relationships and foster PAR’s existing customer base.

“At PAR, we are working to transform the asset recovery industry and grow our footprint,” PAR North America Lisa Scott president said.

“With 19 years of sales experience, Drew’s proven track record of providing internal and external partners with value is just what PAR needs at this time in our industry. His passion and drive will help take PAR’s product and services to the next level.”

Prior to joining PAR, Shull served as regional manager at AFC where he led the 12-branch Midwest region with an automotive floorplan portfolio of $200 million. While at AFC, he coached and mentored branch managers on sales strategies, relationship building and integration of new products from the KAR Auction Services portfolio of brands. He also led the Mobility Branch, an international business opportunity for rental cars, fleet cars, rideshare and retail subscription programs.

The company added Shull served in various sales and financial roles before joining the KAR family. 

Shull will be based in central Indiana and will report directly to Scott, according to the news release.

Experian discovered the nation’s leader in 60-day delinquency still is not within the Deep South.

Findings from the Q1 2019 State of the Automotive Finance Market report showed that while Louisiana and Mississippi still have some of the highest rates, analysts indicated that leading the country continues to be Maryland with a 60-day delinquency rate of 1.49%.

Those Gulf Coast states weren’t far off that leading pace as Experian pegged Mississippi’s rate at 1.19% and Louisiana’s reading at 1.13%.

Maryland tied with Mississippi for the highest rate to close 2018 as Experian noted each state’s 60-day delinquency rate stood at 1.68%

All told, Experian said the overall 60-day delinquency rate remained flat at 0.68% after the first quarter. Even what analysts classify as finance companies — institutions that offer auto financing but do not hold deposits or are associated with an automaker — watched their 60-day delinquency rate drop by 15 basis points year-over-year to settle at 1.45%. And finance companies often absorb the greatest risk by booking more subprime paper than banks, whose rate ticked up 4 basis points year-over-year to 0.67%

The 60-day delinquency rate for captives stood at 0.50% after Q1, down 3 basis points year-over-year. For credit unions, Experian noted their Q1 rate nearly stayed the same compared to a year earlier, edging a basis point lower to 0.29%.

Turning back to the state-level data, here are the top 10 rates for delinquency ripe for repossession, according to Experian:

1. Maryland: 1.49%
2. Mississippi: 1.19%
3. Louisiana: 1.13%
4. South Carolina: 0.95%
5. Georgia: 0.93%
6. Alabama: 0.89%
7. Nevada: 0.78%
8. Texas: 0.78%
9. Arkansas: 0.77%
10. North Carolina: 0.77%

In today’s world where it might seem the only auto-finance element lengthening in time involves terms of consumers’ retail installment sales contracts, Digital Recognition Network (DRN) and American Recovery Service (ARS) are reaching a significant milestone — their 10th anniversary of doing business together in the repossession and recovery spaces.

DRN executive vice president and general manager of fintech Jeremiah Wheeler shared with SubPrime Auto Finance News what it’s like to have a business relationship stretch to a decade.

“I believe it is fairly rare to have such a long-standing relationship with two companies because people and visions change,” Wheeler said. “The main driver behind our long-lasting partnership is the value we both bring to the industry and the process of repossession. We both understand the work that goes into the process of producing very larger returns for lenders.

“Our equal investment in technology to create higher returns for lenders and massive improvements to the agents’ process in the field are major pieces that bond us together,” Wheeler continued. “We will continue to innovate and grow together as we achieve the next level of milestones in this industry and look forward to the next 10 years of success.”

ARS and DRN’s partnership began in 2009 when ARS decided to embrace the use of license plate recognition (LPR) technology through a pilot program for a dispatch center leveraging DRN’s data and analytics. After the successful launch, both DRN and ARS realized the power of combining DRN’s data and analytics with ARS’s recovery operations to generate more revenue opportunities for recovery agents.

Since partnering, ARS has driven the recovery of more than 400,000 vehicles valued at $4.8 billion for auto finance companies. The company indicated those recoveries contributed to more than $110 million in revenue to the repossession agent and affiliate market.

ARS is DRN’s elite provider of live pick-up services.

“The relationship between ARS and DRN has been built on a foundation of a mutual commitment to teamwork and innovative technology,” ARS chief operating officer Dave Copeland said in a blog post on DRN’s website.

“Our mutual collaboration and integrated solutions have illustrated our dedication to delivering the best in class performance for our client partners. We truly value and appreciate the partnership we have built with DRN,” continued Copeland, whose company also is celebrating 25 years of operations in 2019.

After 10 years of working together, Wheeler added in that blog post, “DRN and ARS have cemented our spot at the forefront of revolutionizing the repossession industry by creating and adopting innovative technology to help advance our agents and the recoveries for their lenders. Congratulations, ARS, on your 25 years of excellence. We are excited to continue this partnership for many years to come.”

Wheeler and DRN — also a member of the Auto Intel Council — will be discussing business relationships, fintech and more this summer in Raleigh, N.C. Wheeler is one of a host of experts set to appear during the Automotive Intelligence Summit (AIS), which runs July 23-25.

AIS is gathering of professionals at the edge of technology in auto to provide ample networking opportunities to progress your business and make lasting professional connections. Companies range from firms such as MK & Associates and Deloitte, to digital retailing experts like MotoInsight and CarNow. An early bird registration discount is available through June 14. Registration can be completed here.

The complete AIS agenda and more details are available at www.autointelsummit.com.

Apparently, federal lawmakers heard the concerns from banks, credit unions and finance companies about the challenges of preparing for significant accounting changes in connection with reserving for losses.

A day short of three weeks after a proposal surfaced from six members of the Senate, 10 House representatives crafted potential legislation to delay this major accounting shift for auto-finance providers and other lending operations.

To recap, the Financial Accounting Standards Board (FASB) is looking to ensure that financial institutions have solid measures in place to ensure they have appropriate reserves for any future losses based on the life of each auto loan. As a result, the board has instituted its new Current Expected Credit Loss model (CECL).

The new model will require higher levels of loan loss reserves and lead to changes in lending practices and portfolio management. It will also require a significant amount of data capture, analysis and modeling to meet the implementation deadline of Dec. 15.

However, both Congressional chambers are looking to delay implementation, possibly into 2022. Rep. Ted Budd, a North Carolina Republican, led the charge for the House bill that was introduced on Tuesday. A similar proposal arrived in the Senate on May 22.

“I never knew when I took office that the implementation of accounting standards would prove to be such an important issue, yet I’ve been pleased to see it provide so many opportunities for working across the aisle in this hyper-partisan era,” Budd said in a news release. “The Financial Accounting Standards Board, or FASB, is moving forward with an accounting standard affecting generally every financial institution in the country and the customers they serve, without a proper study of its broader economic impact. To me, this is yet another example of an unaccountable bureaucracy not taking the appropriate steps to ensure that it is helping instead of hurting folks.

“I am particularly concerned about how this new accounting standard will impact lending in economic recessions and affect access to capital for the consumer in financial downturns. It is now up to us in Congress to make FASB complete this common-sense task and that’s what my bipartisan bill would do if enacted,” Budd went on to say.

Rep. Vicente Gonzalez, a Texas Democrat, added, “CECL affects a very broad part of our business sector who engage in lending, big and small. But those effects are not known, and they too could be big or small. My concern is that we have paid too much attention to the largest entities and not enough to the smallest, where a $10,000 compliance bill just to learn whether you do or do not need to change your business plan, is just too much for some to absorb.”

Experts explained that CECL’s requirements mean finance companies must perform life-of-loan loss forecasting as soon as the provider says yes to a contract. Accounting specialists also said  CECL requires lending institutions to calculate expected credit losses using reasonable and supportable forward-looking macroeconomic and financial forecasts and report the losses on a quarterly or monthly basis.

Industry advocates contend many firms lack the macroeconomic and financial forecasts, historical macro data and tools required to simulate the range of credit loss scenarios required by CECL, making the developments on Capitol Hill welcomed news.

“We welcome the introduction of the CECL Consumer Impact and Study Bill of 2019 by Rep. Vicente Gonzalez and Rep. Ted Budd and appreciate their leadership on this important issue,” said Rob Nichols, who is president and chief executive officer of the American Bankers Association.

“This bipartisan legislation, cosponsored by eight other House lawmakers, would require FASB to delay the implementation of CECL until a quantitative impact study can be completed. A rigorous study conducted by regulators is needed to assess the effect this new standard will have on the ability of financial institutions to serve their customers and support the broader economy, particularly when the economy is under stress,” Nichols continued.

“We urge Congress to quickly consider this bill, as well as the Continued Encouragement for Consumer Lending Act introduced in the Senate, and delay the implementation of CECL until we have a better understanding of its true economic impact,” he went on to say.

National Association of Federally-Insured Credit Unions president and CEO Dan Berger added, “As it stands, CECL is an unnecessarily complex accounting method that only adds to the mounting regulatory stress placed upon credit unions. Taking the time to fully study the consequences of this new regulation on consumers' access to credit and the economy as a whole is a necessary step that must be taken.”

And Jim Nussle, president and CEO of the Credit Union National Association, made this assertion in a letter to Sen. Thom Tillis, the North Carolina Republican who led the proposal draft in the upper chamber.

“We understand the independence of the FASB and the extent of Congress’ role in setting accounting standards. Thus, we urge Congress to utilize the authority it does have in order to improve CECL, or at a minimum, ensure there is sufficient, relevant information regarding CECL’s impact from which future decisions can be made. We believe the Continued Encouragement for Consumer Lending Act would do just that,” Nussle wrote.

ALS Resolvion, a leading provider of skip tracing and repossession management services, announced on Monday that the company has a new chief operating officer.

Joining ALS Resolvion with more than 20 years of experience in loss mitigation, collections and back office operations, Scott Darling is now the company’s COO after previously serving as senior vice president at Wells Fargo.

Prior to his role at Wells Fargo, Darling held senior positions at Bank of America, Capital One and PayPal.

“Adding an executive with Scott’s talent underscores our commitment to our brand promise of delivering our clients better results at lower risk,” ALS Resolvion chief executive officer Michael Levison said in a news release.

“In his role, Scott will oversee our case management, post repossession operations, compliance operations and corporate development activities,” Levison continued. “His deep experience will undoubtedly take these parts of our business to new levels of effectiveness and will add a strong voice to our executive leadership team.”

Recovery Specialist Insurance Group (RSIG) and Allied Finance Adjusters are prepping for their annual gathering. REPO19 is set to begin on June 18 in Phoenix.

Among the collection of experts set to speak during the three-day event, organizers highlighted the agenda includes Jack Schafer, who is a retired FBI Special Agent in the Behavioral Analysis Program and now an assistant professor at Western Illinois University, along with Internet profiling expert Michelle Stuart, who is a trainer at the FBI Academy in Quantico, Va., as well as an adjunct professor at the University of Virginia.

The agenda also includes a panel discussion with a collection of finance companies as well as Allied Finance Adjusters business meetings.

The event will be held at the Arizona Grand Resort in Phoenix.

Complete details hotel reservations and conference registration can be found at repo19.com.