Five repossession industry executives with time at companies such as DRN, RDN and PAR North America on their resumes have formed the leadership team of insightLPR, a technology company providing proprietary license plate recognition (LPR) software, hardware and data products to help companies and communities increase their value and safety.
This group that includes John Nethery, Oscar Nunez, Stephen Nethery, Eric Balsa and Jon Armstrong explained that insightLPR has built its reputation deploying LPR fixed and mobile camera solutions for a myriad of private and public entities, including law enforcement, parking enforcement, international airports, and residential communities.
The company now is introducing a unique business model and LPR strategy to the repossession industry in an effort to help recovery agents have more control over the LPR data they collect, enabling them to complete quicker repossessions, increase recovery rates and add value to their businesses.
Leading the team is president John Nethery, who brings more than 25 years of experience to the company building partnerships and delivering growth.
Prior to insightLPR, Nethery served as chief operating officer and chief financial officer of DRN, where he was instrumental in growing the company from the startup stage to a successful acquisition by Motorola Solutions.
“There are tremendous opportunities ahead and I’m looking forward to leading insightLPR in its next stage of growth,” John Nethery said in news relase. “We have an outstanding team and a talented organization of professionals, and I am confident that we will set the standards for excellence and drive innovation in the industry for our partners.”
Joining insightLPR as chief product officer is Nunez, who is an accomplished product, strategy and operations leader that brings expertise in data analytics, auto finance, lease programs, repossession operations, and commercial use of LPR technology.
Before being a part of insightLPR, Nunez served as vice president of product and new markets for DRN and held senior roles with UBER and Capital One.
With a track record of building successful teams and customer facing products, insightLPR said Nunez will lead product strategy and development as well as strategic partnerships.
Stephen Nethery joined insightLPR as the company’s chief revenue officer.
The company highlighted Stephen Nethery has built his career cultivating relationships and leading sales for large organization, as he previously served as senior vice president of business development for DRN and held business development roles with Lockheed Martin and various other companies.
“(Stephen) Nethery has a track record of communicating with customers to understand their needs and equip them with the right products and services,” insightLPR said, while adding that he will assist with insightLPR’s entrance into the auto repossession industry and lead its expansion within the commercial and residential real estate business verticals.
Serving the team as chief data officer is Eric Balsa, who is an accomplished software engineer and technologist with expertise in repossession case management, LPR and software as a service delivery.
Before coming to insightLPR, Balsa served as vice president of engineering for DRN, where he managed day-to-day technology operations for the entire DRN technology stack.
Before DRN, Balsa was an original owner and the technology architect of RDN, leading up to the OPENLANE acquisition in 2010. In both instances, Balsa helped usher in the transactions by leading technical due diligence, eventual integration, and technology vision post-acquisition.
Balsa also served as senior software engineer at Yahoo and has held various IT and technology roles over the course of his career.
Jon Armstrong closes out insightLPR’s management additions as the company’s vice president of vendor management.
The company mentioned Armstrong has more than 18 years of leadership experience in customer service, business process improvement, strategic planning and operations management.
Ahead of joining insightLPR, Armstrong served as the director of operations for Indiana Recovery Services and played an instrumental role on the senior leadership team at PAR North America, where he served as the senior recovery services manager for seven years.
“Armstrong’s expertise, leadership, and knowledge of the repossession industry position him to lead the development of insightLPR’s recovery agent network,” the company said.
John Nethery mentioned what’s immediately ahead for insightLPR
“We are in active discussions with multiple participants in the repossession industry and the feedback we have received in response to our model has been overwhelmingly positive,” he said. “The insightLPR team will be attending the North American Repossessors Summit June 21-22 in Denver, Colorado, and we look forward to officially releasing our solution to the auto repossession industry.”
For more information on insightLPR’s model and strategy for the auto repossession industry, visit insightlpr.com.
There’s another part of the digital world of financial services within automotive that might not get the attention of pre-approvals and the path toward delivery, but not completing it correctly can land finance companies in trouble.
It’s refunding warranties and other F&I products when the vehicle is repossessed or is deemed to be a total loss following a crash or other catastrophic event.
Robert Christini of Dealertrack and Cox Automotive, along with Anne Holtzman and Peter Krall of Allied Solutions, tackled the challenging topic for this episode of the Auto Remarketing Podcast, recorded following their session at this year’s Auto Intel Summit in Raleigh, N.C.
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.
The American Recovery Association (ARA) gained more traction on the compliance front this week.
ARA announced through a news release that Flying A Information Resources has chosen the association’s compliance monitoring system to assist the firm in vetting and monitoring the compliance of its professional recovery agent network, including ARA’s site inspection program.
ARA reiterated that it is dedicated to providing choices to the recovery industry regarding compliance and safety training programs, firm in the belief that recovery professionals have the right to choose the program that best serves their individual company’s needs.
The association said this agreement will provide training program choices for Flying A’s agents among several nationally recognized programs.
“We appreciate ARA’s commitment to the idea of creating a culture of compliance in the recovery industry,” Flying A chief executive officer Richard Landeis said in the news release. “Flying A considers compliance and safety as a key component in our offering to clients, and ARA’s Compliance Monitoring System will both increase our operation’s efficiency and reduce compliance management costs.”
ARA highlighted that its compliance monitoring system begins with ever-evolving and highly detailed educational materials. These cover the complex repossession issues of the present day while blending the past with the present to provide historic guidance into the future of the repossession industry.
A portal also contains all the critical documents, policies and procedures necessary for repossession agents, including study materials for the Certified Collateral Recovery Specialist (CCRS) certificate.
“ARA made the investment to develop an industry leading compliance and safety training program to provide an open trade option for lenders and agency owners considering the best price point for their company,” ARA president Dave Kennedy said.
“I commend and look forward to working with Flying A and other facilitators and lenders who understand that giving the industry an alternative for compliance programming is one of the keys to building a sustainable business model for the collateral recovery industry,” Kennedy went on to say.
The development with Flying A arrives as ARA continues to plan for his year’s North American Repossessors Summit, which is on deck for June 21-22 in Denver.
Early bird registration discounts, a path for finance companies to participate in the annual golf event and more can be found at www.reposummit.com.
The American Financial Services Association highlighted that 11 members of the U.S. House sent a letter to the Consumer Financial Protection Bureau containing seven questions triggered by the regulator saying it is “moving to thwart illegal repossessions in the heated auto market.”
The lawmakers began their letter by referencing a post on Twitter by CFPB director Rohit Chopra, who said, “No one ever wants to wake up to find that their car has been stolen. Given today’s high prices for used cars, the CFPB is taking action to thwart illegal auto repossessions by auto lenders, investors, and servicers.”
The representatives asked Chopra respond to the following questions to determine the level of concern members of Congress should have regarding vehicle repossessions mentioned in part by a previous CFPB bulletin. The questions included:
• In the three years prior to the pandemic (2017, 2018, 2019), how many auto repossessions took place within the United States per each year?
• How many auto repossessions took place during the pandemic, in 2020 and 2021?
• In each year described above, please determine how many instances the CFPB found of an abusive act or practice in auto repossessions.
• In each of the above-mentioned years, how many public enforcement actions resulted from automobile repossessions.
• What historic evidence does the CFPB have that higher automobile costs correlate to illegal repossessions?
• With respect to the enforcement actions cited in the bulletin — does the CFPB have any evidence that the illegal practices cited in these enforcement actions are widespread across the auto lending industry?
• Going forward, does the CFPB commit to resolving limited or circumstantial instances of illegal auto repossessions under your supervision function instead of leading with your enforcement arm?
The lawmakers who signed the letter included:
Rep. Andy Barr
Rep. Warren Davidson
Rep. Lance Gooden
Rep. Bill Huizenga
Rep. David Kustoff
Rep. Blaine Luetkemeyer
Rep. Bill Posey
Rep. Pete Sessions
Rep. William Timmons IV
Rep. Ann Wagner
Rep. Roger Williams
The lawmakers closed their letter to Chopra by writing that his comments were “the latest in a recent trend from your office making disparaging and derogatory statements about legally operating businesses. As the preeminent regulator of consumer financial products, making unfounded and intentionally damaging statements is well beneath the position you hold.
“While you certainly have a responsibility to protect consumers, it is important to note, as you did in a separate blog post, ‘for many, their car or truck is essential to get to work or to do their work.’ Absent the ability to obtain financing, many consumers would be forced to go without,” the lawmakers continued.
“It is important that you stick to the job of protecting consumers and leave behind the practice of denigrating an entire industry and the American citizens and consumers they employ,” the members of Congress added.
AFSA wrapped up its own blog post about the development by writing the association “is encouraged by Congress’ support of an industry that has been working hard for its customers during a challenging time, and we look forward to the CFPB director’s response.”
RISC is bringing the popular consumer retailing concept of BOGO to the recovery space.
The provider compliance oversight and training services to the collateral recovery industry announced this week that each time a customer purchases one Certified Asset Recovery Specialist (CARS) or one CARS Continuing Education (CARS CE) course, they will receive a free driver’s safety course.
“In an effort to further promote safety for the agents who risk their lives driving trucks every day, RISC wants everyone to have the opportunity to expand their education and understanding of how they can stay safe on the road,” RISC president Holly Balogh said in a news release
“During these difficult times, RISC wants to give back to our customers with this free education course,” Balogh continued.
In the news release, RISC gave an example of how valuable this driver’s safety course can be.
As explained by Chip Thompson with American Transportation Insurance Group (ATIG), when an insurance claim is requested by a repossession agent, the insurance company heavily scrutinizes the hiring and training practices of agency owners.
As a source of protection for the repossession company, RISC chief executive officer Stamatis Ferarolis pointed out that is it important that recovery agents are trained on state and federal laws that protect consumers as well as trained on the equipment they use daily to avoid an injury.
“With insurance becoming more difficult to obtain and increasing premiums, it’s critical that every recovery agent take advantage of all the tools available to mitigate risk,” Ferarolis said.
“Our hope is that by combining RISC’s training modules with Drivers Safety the driver behind the wheel will have the best chance to stay safe and out of legal scrutiny,” he went on to say.
During the purchase process, RISC said that once a course purchase is completed, the free course will automatically be added to the cart.
“This will allow the customer to take the course as soon as they are ready,” the company said.
To learn about RISC’s education courses and purchase a course, go to www.riscus.com/education.
The Consumer Financial Protection Bureau used strong language in a news release Monday upon issuing a compliance bulletin on vehicle repossessions.
The CFPB said it is “moving to thwart illegal repossessions in the heated auto market.” The bureau said it was also prompted to compile the 13-page bulletin because of “conduct observed during CFPB examinations and enforcement actions, including the illegal seizure of cars, sloppy record keeping, unreliable balance statements, and ransom for personal property.”
The bureau used the bulletin to reiterate its enforcement power regarding prohibition on finance companies, forwarders and repossession agents engaging in unfair, deceptive, or abusive acts or practices (collectively UDAAPs) when repossessing vehicles.
The CFPB emphasized that it plans to hold these entities accountable if they commit UDAAPs when repossessing vehicles, including:
• Repossessed vehicles if consumers’ loan account is current, even if there was a prior delinquency.
• Repossessed vehicles if consumers entered an agreement to extend the loan.
• Repossessed vehicles if consumers followed any instructions the company said would result in avoiding repossession.
• Repossessed vehicles from consumers who have filed for bankruptcy, and thus are protected by an automatic stay of collection activity.
• Repossessed vehicles as a result of processing payments in a different order than had been communicated to consumers.
• Repossessed vehicles after unlawful fees pushed the consumer’s account into default.
• Withhold personal property found in repossessed vehicles until consumers pay an upfront fee to recover the property.
• Charged for collateral protection insurance after a vehicle is repossessed.
To prevent these unfair, deceptive, or abusive acts or practices, the CFPB said in the bulletin that entities should consider doing the following:
• Review policies and procedures, including call scripts, to ensure that they provide employees with accurate information about steps consumers can take to prevent repossession.
• Review policies and procedures regarding cancellation of repossession orders to ensure that there is an appropriate process for cancelling repossessions if consumers take steps that should result in cancellation.
• Ensure prompt communications between the servicer and repossession service provider when the servicer cancels a repossession. For example, servicers may call repossession service providers to confirm cancelation or use mobile phone applications that push cancellation updates to repossession service providers’ phones.
• Monitor repossession service providers for compliance with repossession cancellations.
• Incorporate monitoring of wrongful repossession in regular monitoring and audits of communications with consumers.
• Ensure that the entity has a corrective action program to address any violations identified and to reimburse consumers for the direct and indirect costs incurred as a result of unlawful repossessions when appropriate.
• Review payment allocation policies and procedures to validate that they are consistent with the payment allocation order disclosed in contracts and other consumer facing disclosures, such as websites.
• Monitor for illegal fees charged after repossession.
• Review consumer contracts to validate that any fees charged to consumers are authorized under the terms of applicable contracts.
• Review consumer complaints regarding repossession and ensure there is an appropriate channel for receiving, investigating, and properly resolving consumer complaints relating to wrongful repossession and illegal fees after repossession.
• Perform regular reviews of service providers, including repossession vendors, as to their pertinent practices.
• Monitor any force-placed insurance (FPI) program to ensure that consumers are not charged for unnecessary FPI. This may include review of FPI cancellation rates.
In the news release, the CFPB made the assertion that finance companies might leveraging high wholesale prices. Monthly readings from Black Book, Cox Automotive, J.D. Power Valuation Services and KAR Global all have been near or above record levels for several months, according to content generated by Cherokee Media Group.
“The CFPB is concerned that these market conditions might create incentives for risky auto repossession practices, since repossessed automobiles can command higher prices when resold,” the bureau said.
“The timing of auto repossessions often comes as a surprise to borrowers and can cause devastating injury by depriving borrowers of the use of their vehicles,” the bureau continued.
“In addition, many people experience emotional distress when a car is taken from them, lose personal property, miss work or lose their job, incur expenses for alternative transportation, pay repossession-related fees, experience negative credit reporting, and have to repair vehicles damaged during the repossession process,” the CFPB went on to say.
The CFPB pointed out that auto financing now is the third largest consumer credit market in the United States with more than $1.46 trillion in outstanding balances, double the amount from 10 years ago.
“With today’s high car prices, auto lenders and investors might be tempted to seize vehicles for resale in the hot used car market,” CFPB director Rohit Chopra said in the news release. “No American ever wants to wake up to see their car stolen. Auto loan servicers need to ensure that every repossession is lawful.”
The American Recovery Association (ARA) is looking to honor some of the industry’s best during the annual North American Repossessors Summit (NARS), which will be conducted in a new location with a new theme.
Along with seeking speaker submissions and award nominations, ARA highlighted the theme for NARS 2022 on June 21-22 in Denver is “Repo In The Rockies: Together We Can Move Mountains.”
“We are headed to the mountains,” the association said. “We are looking forward to seeing professionals from every sector of the recovery industry at NARS 2022.”
ARA is currently accepting submissions to speak during the event. Interested professionals can submit their ideas through Tuesday via this website.
And through March 7, ARA is accepting nominations for seven awards to be given during NARS 2022, including two new honors. Nominations also can be completed online for these accolades:
Agent of the Year
The Agent of the Year 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
The Service Representative of the Year 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
The Agency Owner of the Year 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
The Leadership Award is an award that honors someone that showed leadership through 2021. 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.
New award: Female In Leadership Award (Finance companies only)
The Female in Leadership Award honors an individual within the auto finance industry who demonstrated a deep commitment to the advancement of female leaders at their organizations in 2021. This award celebrates women who challenge, motivate, and inspire while recognizing the cultural and structural barriers to women within the organization in 2021. You may nominate any woman within the auto-finance industry that ignites lasting and impactful change for women through their leadership.
New award: Diversity In Leadership Award (Finance companies only)
The Diversity in Leadership Award honors an individual within the auto finance industry who demonstrated a deep commitment to the advancement of diverse leaders at their organizations in 2021. This award celebrates an individual who challenges, motivates, and inspires while recognizing the cultural and structural barriers for minorities in 2021. You may nominate any finance company that ignites lasting and impactful change for minorities through their leadership.
American Recovery Association president Dave Kennedy directly opened a message to repossession agents, finance companies, forwarders and other service providers by saying: “This year is going to be another year of turbulence in our industry.”
While auto defaults have risen for six months in a row, the last auto default reading before the pandemic was declared stood at 0.89% in February 2020, which is 50 basis points higher than what the metric was at the close of last year.
Even as repo volume slowly returns to more traditional levels, Kennedy reiterated the message he’s often conveyed as ARA president.
“I know many of you are tired of Kennedy singing the same tune, but let’s pay attention to the success agencies in Florida are having because they eliminated fragmentation and realized the truth that working unified is the only way to get results,” Kennedy continued in that industry message.
“So, I am once again reaching out to other leaders to stop the 50 years of negativity embrace the concepts of collaboration and unification and join together to change our world,” he added.
Kennedy pointed out another endeavor that’s looking to bring change to how repossessions and recoveries unfold — the Repo Alliance — the grassroots fund-raising and lobbying effort started nearly two years ago to have representation in Washington, D.C.
“The voice Repo Alliance has given us on the Hill has calmed the fires and has now opened the door for our industry to go from a defense posture to an offensive position,” Kennedy said. “We all know it’s the offense that puts the points and the big W on the board. Business has still been slow for many of us, but dig deep and support us/you through the efforts of the alliance.”
Kennedy also mentioned change is happening with one of ARA’s events, the North American Repossessors Summit (NARS). It’s on tap for June 21-22 in a new location, the Omni Interlocken Hotel in Denver.
ARA is offering early-bird discounts on registration through the end of January. More details can be found at reposummit.com.
Clashes involving repossession agents, forwarders and finance companies recently brought Jeremiah Wheeler of DRN | MVTRAC into the mix.
When agents stopped scanning license plates as a way to create industry attention about repossession fees, the move left Wheeler with a conundrum that he addressed during a frank conversation with Patrick Altes on the Repo America Podcast.
Wheeler offered some feedback aimed at helping agents, forwarders and finance companies all succeed in light of auto defaults trending higher now for six months in a row.
To listen to the conversation, go to this website.
Bryanna Cox takes listeners of the Auto Remarketing Podcast into one of the most difficult, yet vital, parts of the automotive industry.
The vice president of Asset Resolutions, a full-service repossession and recovery agency in Kingwood, Texas, described how repossession agents are handling the demands put upon them, as the pandemic has impacted their livelihoods significantly.
Cox also touched on how the repossession industry has united as a result.
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.
