Lender Compliance Technologies (LCT) and AKUVO both specialize in mitigating risk for finance companies and other clients.

And now they’re working together.

The provider of compliance solutions for managing F&I product refunds announced a new partnership this week with the technology organization that specializes in collections and credit risk.

LCT pointed out that federal and state regulators have increased their scrutiny of the administration of F&I products in recent years. Specifically, LCT said regulators want to ensure contract holders are refunded when F&I products are cancelled due to repossessions, early payoffs and total losses.

“Managing the refund process has historically been a manual process, which can be inefficient and sometimes inaccurate,” LCT said.

LCT’s Refund Control solution can digitally monitor and track the refund process as required by consumer protection laws.

And now finance companies can access this tool via AKUVO.

“Lenders need a solution that helps them stay compliant and operationally effective. With LCT, lenders get the best of both worlds,” LCT head of sales Tyler Gray said. “We’ve created a solution that provides the transparency and tracking that regulators expect, and we’re thrilled more lenders can access it through the AKUVO Platform.”

Furthermore, LCT mentioned that the National Credit Union Administration (NCUA) published a letter earlier this year regarding its 2024 Supervisory Priorities, which included examination of credit union processes and controls for GAP cancellations and refunds.

Specifically, LCT recapped that the NCUA will be reviewing how credit unions are refunding members in a timely, accurate and uniform manner. Credit unions will also need to be prepared for state level examinations related to GAP and all other voluntary protection product cancellations.

“We’re thrilled to add value to the AKUVO Platform with LCT’s regulatory solution,” AKUVO’s senior vice president of relationships Mike Ruggiero said. “With this integration, requesting cancellations and refunds will become a seamless part of our customers’ collection process.”

During the fourth quarter, AKUVO finalized similar alliances to improve collections and mitigate risk. One was with REPAY, and the other was with Resolvion.