Since Used Car Week took place with less than 60 days remaining in the year, two leading executives from Allied Solutions outlined their own professional goals for 2022 and also what the company is looking to accomplish during the next calendar year.
In this Auto Remarketing Podcast recorded in person at the Red Rock Resort in Las Vegas, Anne Holtzman and Suzi Straffon shared a portion of their agendas for the new year; one they each expect to be active in relation to repossessions, recoveries and potential refunds of ancillary products.
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.
With the potential for repossession volume to rise, Recovery Industry Services Co. (RISC) wants to provide finance companies with a path to agents who can complete the task within federal and state guidelines.
On Tuesday, the firm launched the all-new RISC Pro Directory that will allow users to search for a RISC Pro member agent utilizing a combination of fields, including city, state, ZIP code or name.
The company also highlighted that RISC Pro members will be able to feature their company contact information, the services they offer, locations they cover, a link to their website and direct email contact.
“In this highly competitive landscape, RISC Pro members will be able to promote themselves to clients simply by being a fully compliant member in good standing. Clients who seek to find agents dedicated to compliance can start by searching the RISC Pro directory” RISC chief executive officer Stamatis Ferarolis said in a news release.
The firm explained that RISC Pro is a membership for agents that have set their company’s compliance status as a high priority.
Additionally, RISC Pro members can get discounts on RISC’s CARS training programs, free driver safety training, business templates, worksheets and more.
“Clients recognize and appreciate their effort to go above and beyond and often call RISC for their membership list,” the firm said. “The directory gives clients the opportunity to search and work directly with RISC Pro members.
To learn more about RISC Pro, go to https://www.riscus.com/AgentServices/riscpromembership.
Wrongful repossessions might be the most heartburn-inducing, headache-creating part of auto finance.
Offering an assessment of the current landscape of recoveries and more on this episode of the Auto Remarketing Podcast is Sabrina Neff, a partner in the Houston office of Husch Blackwell, who also was named to the 2021 Texas Top Women Lawyers list published by Thomson Reuters Super Lawyers.
To hear 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.
If you have read the content for some time generated by us here at Cherokee Media Group, you might already know of my great affinity and respect for repossession agents.
Rightfully so, much of our material highlights the exciting parts of the industry, such as digital retailing and financing, as well as the latest technology to make those processes flourish. But my opinion of repossession agents and what is asked of them ticked higher when I recently found a press release from the Massachusetts attorney general.
The press release detailed a settlement the Massachusetts AG reached with two finance companies involving dog leasing.
Yes, you read that correctly — dog leasing — which is illegal in Massachusetts, but evidently is permissible in other jurisdictions. Here is a segment of that press release:
“In some states, pet stores may offer the option of leasing as an alternative way to finance a dog. Under such an arrangement, the consumer must make monthly payments to the finance company for the duration of the lease. To buy the dog at the end of the lease, the consumer must make yet another payment to the finance company to finally own the dog. If a consumer misses a payment, the dog can be repossessed, just like a leased car.”
Repossessions of dogs like a vehicle? Even typing that sentence just now, I literally am shaking my head.
And I thought about how contentious a vehicle repossession sometimes is. As beloved as a pet can be, I can only imagine the emotions could soar if an agent is asked to recover a canine presumably worth thousands of dollars.
The entire situation prompted me to ask some of my contacts in the repossession world how often this scenario has happened in their careers, whether being asked to recover a dog or other live animals.
One contact shared about recovering the offspring of a horse that enjoyed such a successful racing career that the animal was a world champion in competitions orchestrated by the American Quarter Horse Association.
Another agent mentioned how credit unions have asked to secure cattle that were the collateral connected with a contract. It prompted the person to tell a quite an anecdote:
“I had to repossess a hundred head of cattle once. If you don’t think that was interesting, I got 99 when I asked where the 100th cow was. The farmer took me into the barn and there was an ear nailed to the wall. “He looked at me and said, ‘I ate him.’ End of story.”
Whether it’s a show dog, racehorse, beef cow or a full-size pickup with a lift kit, repossession agents are asked to recover quite a list of collateral. And they certainly respond to the challenge.
Here again is a salute to the repossession agent. You’re asked to do what few in any walk of life would. Thank you for the critical role you play in the automotive industry we all get to enjoy.
Nick Zulovich is senior editor at Cherokee Media Group and can be reached at [email protected].
Weltman, Weinberg & Reis Co. and DRN are joining forces for a free, two-part educational webinar in an effort to help the entire repossession and recovery industries prepare for what might be coming down the default pipeline this year.
In the first session of this two-part, complimentary series, Weltman’s collateral recovery, compliance and collections team will answer some of the most frequently asked questions about the early stages of recovery.
Shareholder Scott Weltman will moderate the session featuring Weltman shareholder Amy Holbrook, Weltman attorney Stefanie Collier and DRN executive vice president Jeremiah Wheeler.
The webinar is scheduled for 2 p.m. ET on May 5.
The companies said these experts will share their recovery expertise on how to improve operational efficiencies and recoveries in a compliant manner at every turn on the road to recovery.
Other top takeaways set to come from the opening segment include:
— The benefits of utilizing data analytics to locate vehicles
— Learn vital repossession compliance and communication guidelines
— The pros and cons of the replevins legal route and why it’s important to use this tool.
“With defaulted auto loans expected to be on the rise as a result of the COVID-19 pandemic, it’s important to make sure your recovery engine is running on all cylinders,” event organizers said. “The road to recovery is full of twists and turns. The auto recovery process is anything but easy to navigate. Strict rules control what a lender can — and can’t — do if a customer fails to make timely payments, insure the vehicle and/or interfere with repossession.
“It’s critical that you understand recovery compliance, plus how to leverage data solutions and legal remedies that can drive your success,” they went on to say.
Registration for the webinar can be completed on this website.
The American Recovery Association is hosting a free webinar focused on recovery litigation.
Patrick Newman and Tal Bakke of Bassford Remele intend to delve into several topics, including consumer notice and waiver issues as well as contractual provisions to consider in working with servicers and forwarders.
The legal experts also plan to mention concerns about repossessions raised by the Consumer Financial Protection Bureau (CFPB). It’s all part of the webinar scheduled for 2 p.m. (ET) on Wednesday.
“The recovery industry has faced obstacle after obstacle during the pandemic,” ARA said. “But as regulations begin to loosen, it is important to be knowledgeable on litigation that could affect the repossession process for you and your employees.”
“It is so important to educate yourself on different legal issues that could impact your everyday business processes,” the association went on to say.
Registration for the webinar can be completed here.
You can say Joel Kennedy literally was running for the repossession industry.
Earlier this month, the current president of the National Automotive Finance Association completed what’s known as the 4x4x48 Challenge to benefit the Repo Alliance, a federal lobbying initiative.
Kennedy ran four miles, every four hours, during a 48-hour period beginning on March 5. In the process, he raised $21,156 for Repo Alliance, which the American Recovery Association started a year ago as a fundraising organization to boost lobbying and other industry promotion efforts.
The Repo Alliance is the combination of ARA along with the California Association of Licensed Repossessors (CALR), Texas Accredited Repossession Professionals (Texas ARP) and Harding Brooks Insurance.
The alliance spelled out a trio of goals, including:
• Change the negative, reputational image of the recovery industry
• Educate legislatures of the vital role repossession agents play
• Fight against language in bills or guidance from regulators and lawmakers that could decimate the recovery industry
After tallying up Kennedy’s fundraising efforts, the NAF Association said in an industry message, "Together, we are one step closer to keeping our seat at the table and making a change in our industry."
For more information on Repo Alliance visit or to donate, visit RepoAlliance.com.
Handling personal property left in a repossessed vehicle is one of the most difficult industry challenges. It’s one that can result in significant consequences if not completed properly, as highlighted by a consent order made public in October involving the Consumer Financial Protection Bureau (CFPB) and Nissan Motor Acceptance Corp. (NMAC).
To help repossession agents, finance companies and other operations involved in repossessions, RISC recently generated a free report in partnership with Hudson Cook that summarized the details of personal property laws on a state-by-state basis.
Part of a commentary compiled by RISC president Holly Balogh and sent to SubPrime Auto Finance News, the company tried to illuminate the complex situation by taking a pastime path many people enjoy — trivia.
Balogh asked, “What do the states of Alaska, Arizona and Alabama have in common?” She then replied, “Besides starting with the letter A, they do not have any specific laws for how to handle personal property. Therefore, federal law must be adhered to.”
She had another one.
“What state requires a notification that the repossession agent is in possession of personal property? If you guessed Indiana, you got it right,” she said.
And then Balogh offered one more.
“What state has a requirement for special treatment for medical devices in the vehicle? If you guessed Maine, you would again be right,” she said.
While trivia certainly can be enjoyable, maintaining compliance with this aspect of repossession certainly is not time for playing since part of that $5 million consent order involving the CFPB and NMAC dealt with personal property in repossessed vehicles.
“Education is paramount to protecting yourself from liability in several different areas of the repossession process. When it comes to personal property, the rules vary by state and some states have specific regulations. Unfortunately, lenders may unknowingly put themselves at risk for fines if they are unaware of these unique laws,” Balogh wrote.
“As you can see from these few examples, some states, nine in all, have very unique and specific personal property requirements. RISC has taken a key step to support the industry and help all parties understand what rules must be followed,” she went on to say.
The RISC report can be found on this website.
While the National Automobile Dealers Association is orchestrating its largest event of the year virtually this week, the American Recovery Association announced its decision to reschedule its primary events to the fall in hopes of having them in person.
After careful consideration, ARA said that the North American Repossessors Summit will be conducted on Oct. 7-8 with the ARA Convention preceding that event on Oct. 6. They’re both set to unfold at the newly renovated Omni Mandalay in Irving, Texas.
“Thank you to everyone who recently filled out our 2021 Health and Safety Survey. We sincerely appreciate your thoughtful feedback as we navigate through these challenging times,” ARA said in an industry message.
“NARS and the ARA Convention have always been a time for professionals from across the country to come together, and we believe it is in all of our best interest to wait until we can all convene as normal with fewer limitations and safety concerns,” the association continued.
“We have seen the unfailing resilience of this industry and we are hopeful for the future as we look toward October. The NARS committee will continue to monitor the ongoing situation as we navigate challenges with one voice, strong and united,” the association went on to say.
ARA indicated that individuals who already registered for NARS 2020 will automatically have their registrations transferred for the rescheduled event.
ARA said questions about registration status or other inquiries about its events can be sent to [email protected].
“Stay on the lookout for more updates from NARS 2021, including the announcement of a new theme and exciting speaker sessions to come. We can’t wait to see you all there,” ARA said.
More than 2,000 years ago, Greek mathematician Archimedes is credited with the finding that the shortest distance between two points is a straight line.
Well, five organizations from the repossession world recently reiterated their industry position using a similar assertion that the most efficient way for finance companies to repossess vehicles and recover funds is the direct method. That’s when there’s a straight line of communication and assignments flowing between the finance company and repossession agent.
“Working directly with companies and associations who have proven consistently over the decades to be reliable, trustworthy and professional is still the safest and most effective strategy that you can employ,” the groups said in a message to SubPrime Auto Finance News. The organizations included:
— Allied Finance Adjusters
— American Recovery Association
— California Association of Licensed Repossessors
— Eagle Group XX
— Texas Accredited Repossession Professionals
Along with being potentially being more cost-effective for finance companies, the organizations asserted their collective experience and resources often can prevent one of the worst scenarios collections and recovery departments can encounter.
“As a lender, you know that there is no worse feeling than being on the wrong side of a wrongful repossession,” the groups said. “It creates a pit in your stomach when the tables are turned. Communication breakdowns are the usual culprit, and the more points of communication to go through, the more that can go wrong.
“Remember direct contact is best,” they continued. “Always remember, these are your accounts. You need to be in control of them and you need to know who represents you in the field.”
And with the pandemic impacting non-corporate entities quite significantly, the groups closed their proposition to finance companies with this thought.
“Save a small business and get better and safer results. Use an association or direct agent for your assignments,” they said.
