The very first and most frequent guest on the Auto Remarketing Podcast appeared again during the 2023 Vehicle Finance Conference hosted by the American Financial Services Association in Dallas.
Jeremiah Wheeler, president of DRN and MVTRAC, offered an update about consumer migratory patterns and how they’re influencing vehicle repossessions.
To listen to the conversation, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
The American Recovery Association said submissions are open for the 2023 NARS Industry Awards, which will be given during the 15th annual North American Repossessors Summit (NARS) on April 6-7 in Orlando, Fla.
Awards will be handed out in seven different categories. The NARS Planning Committee will select the top three nominations in each category, and the winners will be selected by a vote from the entire industry.
The award categories include:
Agent of the Year
This award honors the agent who has demonstrated outstanding professionalism, understanding of lender needs and full compliance with industry standards, as well as protection of the consumer's rights and safety.
Service Representative of the Year
This award represents someone who has shown exemplary performance and has consistently excelled in their position. This person demonstrates integrity, creates a positive atmosphere in their workplace, and displays a strong commitment to the mission and values of our industry.
Humanitarian of the Year
Humanitarian of the Year submissions showcase an industry professional of any position who contributes significantly to alleviating human suffering and improving the quality of life in their community. This person demonstrates leadership through outstanding volunteer accomplishments that bring honor to the collateral recovery profession.
Agency Owner of the Year
This award will go to an owner who has at least a three-year commitment of excellence within their company and the collateral recovery industry. This person should also be able to document their commitment to professional education and compliance training as well as the use of innovation and creativity in enabling their company to prosper and extend its reach in the collateral recovery profession.
Leadership Award
This award honors someone that showed leadership through 2022. This can be anyone in the recovery industry that you feel has pushed past every boundary and obstacle that was inevitably thrown their way this year and has overcome despite the odds–someone who has exuded true resiliency.
Female in Leadership Award (Finance companies only)
This award honors an individual within the finance company industry who demonstrated a deep commitment to the advancement of women leaders at their organizations in 2022. The award celebrates women who challenge, motivate, and inspire while recognizing the cultural and structural barriers to women within their organization in 2022. You may nominate any woman within the finance company industry that ignites lasting and impactful change for women through their leadership.
Diversity in Leadership Award (Finance companies only)
This award honors an individual within the lender industry who demonstrated a deep commitment to the advancement of diverse leaders at their organizations in 2022. This award celebrates an individual who challenges, motivates, and inspires while recognizing the cultural and structural barriers for minorities in 2022. You may nominate any lender that ignites lasting and impactful change for minorities through their leadership.
Nominations can be made via this website.
James Waldron recently recovered more than just a high-line Mercedes-Benz. The CEO of Texas-based 1st Adjusters helped to lead federal officials to quite a fraud scheme that included several other luxury vehicles.
Advantage Automotive Analytics recapped the incident for SubPrime Auto Finance News after the risk mitigation company and GPS provider included Waldron in a panel discussion during last month’s BHPH Summit hosted by the National Independent Automobile Dealers Association.
First, a little background about Waldron, who has been in the collateral recovery industry for more than 25 years, having started in New York before moving to Texas, where he formed his own company. Today, his company is a professional full-service collateral recovery company headquartered in Austin, Texas, with nine offices in Austin, Dallas, San Antonio, Houston, Del Rio / Eagle Pass and Corpus Christi.
Waldron said 1st Adjusters was contracted to repossess a high-end, late-model Mercedes-Benz. Given the vehicle’s value and other considerations, Waldron, a licensed private investigator, took on the recovery himself.
“Fortunately, the vehicle had been equipped with an Advantage GPS unit and we were able to get a good location,” Waldron said.
This vehicle was sold through a dealership, financed by a third-party finance company and rushed at the customer’s insistence. Many “bells and whistles” were added, including an extended service contract. The first-payment default resulted in the repossession order.
“Because of the Advantage’s GPS data, we were able to locate the vehicle efficiently,” he said. “That’s a real plus for us when it comes to being profitable.”
In this case, not only was Waldron able to locate the Mercedes, he saw something suspicious. The apartment lot where he found the vehicle also had other late-model vehicles, each had temporary plates. These included three Mercedes, a BMW, and a Jaguar. Turns out all the vehicles were purchased fraudulently.
“What was very concerning to me was that inside the one vehicle I recovered was a folder loaded with stolen IDs, credit cards, and other personal information,” he said. “Think about a large binder, the kind you might use to collect and secure a baseball card collection. In the one binder, I found 167 real IDs. The other vehicles had the same type of binders in them as well. I never got into those.”
Waldron was shocked when he phoned the dealership that sold one of the cars financed by a third-party finance company. After finding a manager, he was told, “Oh, that vehicle was fully funded. We don’t know anything else.”
As disheartening as that was for Waldron, contacting the county sheriff may have been worse.
“He got on the case relatively quickly but told me that his department was understaffed and did not have the resources to investigate what was obviously organized fraud activity,” Waldron said. “The IDs included a federal ID, and I called authorities. The Feds were at my door in 37 minutes. That gave me some hope.”
Part of what makes 1st Adjusters successful, Waldron noted, is that his company is willing to do “door knocks.” His employees take the time to try to make contact with the car buyer or at least with whoever answers the door. Many lenders do not want to do door knocks, as they typically cost more and may lead to an altercation.
“We’re paid when we locate and recover the vehicle for our client,” he said. “We do what we know works.”
A longtime member of the American Recovery Association, Waldron said the work the association has done to raise awareness of the challenges facing recovery professionals, as well as legislative and regulatory advocacy, has been tremendously helpful to agents across the country.
Waldron noted that dealers must take an active role in preventing fraud and what amounts to vehicle theft.
“They must abide by the Red Flag rules,” he said. “It’s incumbent on dealers and lenders to verify stips, use technology like GPS and the data the units generate to combat a growing and expensive problem.”
“We encourage dealers and lenders to include GPS disclosure language in the original contract, even if a unit isn’t installed,” he said. “Often, if there are consistent late payments or the customer reacquires the vehicle after a repo, the dealer or lender should put a GPS on the vehicle at that time, and there is no legal disclosure issue.”
Fraud affects everyone, Waldron noted.
“I have to say that after what I saw in that vehicle with the IDs, credentials, credit cards, and gift cards that were removed from mailboxes, I stopped mail coming to my home. I use a PO box.”
Waldron shared this recent success story that exemplifies the challenges dealers, finance companies, and recovery agents face in an environment with an ever-more sophisticated criminal element as well as intensifying operational factors.
Increased insurance rates, difficulty securing insurance, higher recovery equipment costs, difficulty hiring and keeping quality employees, and rising diesel prices have left many repossession agents with no other option than to exit the business, Waldron said. Today, fewer businesses are handling more repos, even though repos generally have declined during and after the COVID-19 pandemic.
“GPS limits the number of addresses we have to check,” Waldron said. “The quicker and easier we can secure the collateral, the fewer expenses we incur. Regardless of how much our expenses are, we’re only paid what was agreed on upfront. If we don’t secure the unit, we don’t get paid.”
Ahead of his appearance on stage during Used Car Week 2022 in San Diego, PAR North America’s Ryan Hawley took time for this episode of the Auto Remarketing Podcast.
Hawley described how the forwarding industry is getting ready for an expected upturn in vehicle repossessions during 2023.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
American Recovery Association executive director Joel Kennedy recently reported findings from an industry survey about vehicle and lot storage costs.
Kennedy explained that ARA is examining this entire category of expenses that includes everything from rent, security, insurance and staffing.
ARA’s survey indicated:
• 71% of respondents have between 1-3 vehicle storage lots, and over 50% of those agents lease their lots
• 40% of agents who lease their lots reported that their rents increased by more than 10% in the last two years
• Two thirds of all agents responded that their lots can accommodate a maximum of 200 vehicles at any time
• 80% of respondents reported that, on average, vehicles remain on their lots between 10-30 days
“Vehicle storage is a big expense category, and it is a common to all of our members,” Kennedy said in an industry message. “Also, and more importantly, revenue from vehicle storage has been shrinking due to lower negotiated daily storage fees and free storage periods. A recent uptick in arson attacks at recovery agent lots has been another hit to already thinning insurance carriers and increasing premiums.”
Kennedy then noted ARA sees three potential solutions to help agents, including:
1. Expand existing agent lot capacity, since the likelihood of new agencies starting up is low
2. Accelerate the movement of recovered collateral from recovery agent lots
3. Address fair storage fees, and eliminate free storage from contracts
“The ARA thanks its members and the industry for their participation in this survey. The sole purpose of this survey is to put numbers to what we already know and provide that data to the industry at large,” Kennedy said.
“We are committed to building a sustainable and profitable business model that benefits every stakeholder in our industry and, it is our opinion, a conversation about this topic and daily storage rates is paramount if things are going to change,” he continued. “We are aware that without an open discussion about how to accomplish this goal, we will see even more agencies depart our space.”
Hurricane Ian made landfall on Wednesday near Cayo Costa, Fla., which is just south of RISC’s corporate headquarters in the Sunshine State.
In response to the impact caused by the destructive storm, RISC said on Thursday that the company is waiving all RISC Pro fees for any repo agency located in Florida.
RISC said this support is being provided to both new and existing Florida RISC Pro members.
“The extreme devastation from Hurricane Ian is going to severely impact the operations of recovery agencies in the state. RISC hopes that by waiving RISC Pro membership fees for agents in the state, we can provide a little help to those in need during this challenging time,” RISC CEO Stamatis Ferarolis said in a news release.
According to a news release posted on Thursday afternoon by the office of Florida Gov. Ron DeSantis, more than 2.5 million people in the state were without power because of Hurricane Ian, which came ashore as a Category 4 storm with winds approaching 150 mph.
For more information about RISC Pro or to sign up go to riscus.com/riscpro.com.
This summer certainly has been a season of change for Primeritus Financial Services, which now has a new chief executive officer and chief financial officer.
Taking on the CEO post is Steve Norwood, who previously led Consolidated Asset Recovery Systems (CARS) until it was acquired by Primeritus in the spring of 2019.
Norwood brought a key executive with him, as Jennifer Turnage has been named as Primeritus’ new CFO. Turnage served in the same capacity with CARS.
Norwood spent part of Tuesday afternoon chatting with Cherokee Media Group senior editor Nick Zulovich for an episode of the Auto Remarketing Podcast, explaining why he’s now leading Primeritus and what the top tasks on his new work agenda are.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Last week, RISC collaborated with MBSi Corp. to deploy VendorConnect, what they called a “revolutionary” compliance management solution that can allow access to a comprehensive list of compliant, vetted third-party vendors in the repossession industry.
This week, RISC announced free RISC Pro membership for new members through the end of the year.
The third-party repossession compliance management company highlighted RISC Pro membership can provide many benefits to repossession agencies.
Additionally, the company said CARS education has been reduced for both RISC Pro members and non-members.
RISC Pro members will pay $25 per CARS and continuing education courses. Non-members will pay $75 for CARS and continuing education courses.
“The financial incentives of discounts off education and $1 off RecoveryConnect recovery fees make becoming a RISC Pro member an easy financial decision. These discounts will pay for membership almost immediately,” RISC chief executive officer Stamatis Ferarolis said in a news release.
In addition, the Drivers Safety course, which the company said is a $99 value, also is free to members.
Furthermore, members have a built-in marketing platform for their business by being featured in the RISCPro.com directory and within the RDN and MBSi platforms.
“As the leading compliance services company in the industry, RISC is continually asked by clients to provide agents who work in various locations around the country,” RISC president Holly Balogh in the news release.
“RISC supports those clients by providing them names and numbers of their RISC Pro agents. In the last four months, six major lenders have reached out to RISC for assistance to find the most compliant agents in the RISC network,” Balogh went on to say.
The company closed by noting RISC Pro members also have access to business templates, an online 24/7/365 document management platform to store their compliance information and discounted encrypted email security service from Paubox, which can allow a company to send and receive encrypted emails securely to protect them and their financial clients.
For more information about RISC Pro or to sign up, go to riscus.com/riscpro.com.
Repossessions are complicated, so MBSi Corp. and RISC are working together to help finance companies find the compliant resources they need.
This week, the SaaS provider of repossession assignment software and third-party compliance management company for the auto finance industry announced the launch of VendorConnect, what they called a “revolutionary” compliance management solution that can allow access to a comprehensive list of compliant, vetted third-party vendors in the repossession industry.
MBSi and RISC highlighted that VendorConnect can provide immediate access to compliant agents that are fully vetted and available to work for creditors and national forwarders.
VendorConnect is designed to provide full transparency of the third-party vendor and includes client propriety documents, insurance ACORDs, licenses, background checks, onsite inspections, and CARS certification.
“With VendorConnect, a client can be sure that the third-party vendors they use to handle sensitive borrower data are 100% compliant to their unique standards,” MBSi and RISC said in a news release.
MBSi and RISC reiterated that the Consumer Financial Protection Bureau’s supervisory guidance was recently updated to stress the importance of real-time data transfers to prevent the risk of wrongful repossessions and to require the monitoring of service providers.
With recovery assignment volume on the rise, MBSi and RISC pointed out that it’s more important than ever to have an audit-proof process in place and a platform that helps manage both recovery performance and compliance oversight.
Finance companies now can monitor performance down to the agent in the field, according to MBSi and RISC.
VendorConnect is where RISC will continue to provide compliance monitoring for third-party and fourth-party vendors. RISC’s compliance service offerings include:
• Vendor Vetting: insurance, business licenses, policy and procedure documents, OFAC and more
• Background checks
• Onsite inspection of the storage and office locations
• RISC’s CARS Education
“Nothing like this exists in the collateral recovery industry,” RISC founder and chief executive officer Stamatis Ferarolis said in the news release. “VendorConnect was years of collaboration between RISC and MBSi to be the next evolution of compliance management. This system provides complete transparency on who is working and recovering a client’s collateral.”
MBSi president Cort DeHart added, “This an exciting opportunity for MBSi as the software provider and our partner RISC, who provides compliance services and oversight, to be able to merge the assignment management and compliance management systems together in one efficient platform.
“We continue to work hard to ensure that we are providing the best tools we can for our customers,” DeHart went on to say.
To receive a 30-minute demo and to hear about trial offers, go to this website.
This week, new American Recovery Association executive director Joel Kennedy shared a development meant to benefit not just organization members, but potentially any repossession agent, too.
In an industry letter, Kennedy said “several” of the largest auto finance companies in the industry have agreed to allow the agents to choose what compliance training program works best for their company's business model.
To help agents make an informed decision, ARA is hosting a free webinar because, “It is time to discuss how this affects you and what steps are necessary to take advantage of this freedom of choice,” Kennedy said.
The webinar is scheduled for 2 p.m. (ET) on Wednesday. Registration for it can be completed via this website.
“All agents, regardless of ARA membership, will have the choice to participate in the CCRS compliance platform or stay with their current platform. Both options are available for all and the decision will be completely yours to make,” Kennedy said in the industry letter.
“We couldn’t be happier about the outcome and look forward to a seamless solution that benefits everyone in our industry,” he continued.
If an agent chooses to utilize the CCRS platform, Kennedy said they have to complete a form available online that authorizes CCRS to provide the required data to the vendor connect database. Kennedy indicated this is the database MBSi uses to confirm current certification.
“Once this form is completed and the database uploaded, you will have no other tasks to complete and it will be business as usual for you. You will be able to utilize the RC mobile platform to access the assignments and mark recoveries just like you always have,” Kennedy said.
“If your RISC or CCRS certificate is about to expire, now is the time to choose your preferred compliance platform. Already caught up on compliance? Awesome, now you can decide which compliance platform for you to utilize,” he went on to say.
Kennedy added that the ARA also is in the process of collecting interest forms and are currently testing with some agents.
“So, the sooner you complete the forms, the sooner we can act,” Kennedy said.
