Since the Detroit Lions are officially out of the Super Bowl hunt, my husband has made a bold move: deleting all his NFL apps. His mission? To escape the endless negativity from the talking heads until Training Camp kicks off. By then, he plans to reinstall them and dive back into the action. Until then, Iāve stepped up as his primary source for coaching updates and off-season newsāa role Iāve embraced, especially with major moves like Ben Johnson heading to the Bears and Aaron Glenn to the Jets.
Staying Informed is Critical
But this little dynamic has got me thinking: staying informed is essential, not just in football, but in the world of auto repossession compliance. Just as coaching changes can reshape a teamās entire strategy, shifts in compliance regulations and industry trends can transform the auto finance landscape. And much like deleting NFL apps doesnāt stop coaching or player changes from happening, ignoring repossession regulatory compliance doesnāt make the risks or changes any less real. In fact, neglecting to stay informed can leave you blindsided when itās time to act.Ā
Auditing Repossession Vendors
This is where the importance of auditing repossession vendors comes into play. Auditing isnāt just about ticking boxesāitās about proactively understanding state, city, and even village-specific regulations and ensuring your vendors align with compliance expectations. Whether you place accounts directly with a repossession agent or use a national forwarder, itās crucial to recognize that repossession is far from a one-size-fits-all process. Each state has its own regulations, and some municipalities impose additional specific requirements. Staying informed and ensuring compliance isnāt optionalāitās essential for successfully navigating this ever-changing landscape.Ā
Ignore the Noise and Focus on What Really MattersĀ
Here are some critical topics to audit to ensure compliance and mitigate risk:Ā
Police NotificationsĀ
Several states require police notification for repossession, but donāt overlook village-specific requirements. For instance, the Ohio Village of Valley View has unique notification mandates. Ensuring these smaller jurisdictions are accounted for can prevent costly oversights.Ā
LicensesĀ
Some states require repossession agents to be licensed. But what about scenarios where an agent picks up collateral in a state that requires a license, while their business is based in a neighboring state without such requirements? Additionally, if the collateral is stored in a state that doesnāt require licensing, do the same rules apply? These nuances must be addressed to avoid compliance gaps.Ā
Personal Property LettersĀ
Certain states require creditors to send personal property letters. But do your agents provide the necessary details in time for you to send these letters? Ensuring alignment on timelines and responsibilities is vital.Ā
Agent InsuranceĀ
While ensuring proper coverage is critical, itās equally important to verify whether the agentās policy extends to the lots where your collateral is stored. This often-overlooked detail can have significant implications in the event of a loss.Ā
Stay Ahead by Staying InformedĀ
In both football and repossession compliance, staying ahead means ignoring unnecessary noise and focusing on the information that truly matters. Just as coaching changes can reshape the course of a football team, compliance shifts can transform your risk landscape. Being proactive and ensuring your vendorsāand your processesāalign with current regulations can make all the difference.Ā
So, whether youāre managing a roster or monitoring compliance, the key takeaway is the same: staying informed isnāt just a good strategy; itās a necessity.Ā
Additional Training and Blogs Available Regarding Repossession ComplianceĀ
If you need some training assistance with your third-party vendor auditing, you may want to consider:
Third Party Vendor Auditing, taught by Bev and Ken Evancic.
Or, take a look at some of our other blogs:
National Repossession Forwarders: Who Holds the Key To Compliance Across 400+ Agents?
and
Insights into the Auto Finance Market and Repossession Trends.Ā
Author: Bev Evancic
Bev.Evancic@ResourceManagement.com
Bev Evancic is a Senior Vice President at Resource Management Services, Inc.Ā Prior to employment at RMS, Bev worked as the Collection and Recovery Manager at AT&T Universal Card,Ā Citi,Ā and Federated Department Stores. Bev started in the collection industry as a collector at an upscale clothing store in Cincinnati, Ohio. As a returned check and private label credit card collector, Bev gained a basic understanding of the collection industry that has not changed with the introduction of regulations. Her collection philosophy begins with the idea that businesses and customersĀ benefitĀ from preserving the customer relationship. First, collectors need toĀ attemptĀ to contact customers when it is convenient for the customer to discuss his/her financial condition and willingness/ability to pay.Ā Second,Ā you never collect money by intimidating or threatening customers. Third, businesses must make sure the debt is valid.Ā
She has managed all phases of collection and recovery operations, including automatedĀ dialer units,Ā bankruptcy,Ā and legal units, skip tracing units, internal collections, outside collection agency networks, and Consumer Credit Counseling. As a Consultant for ResourceĀ Management Services, Inc., Bev has spearheaded collection and recovery best practices reviews for many top credit grantors. Her articles on dialer operations, agency management and bankruptcy best practices have been widely publicized.Ā
She is well known and regarded as a specialty expert in the areas of: Repossession, Bankruptcy, Estate, Litigation, as well as Pre- and Post- Charge-off.Ā Prior to joining Resource Management Services, Inc. in 1995, Bev managed the Recovery Department for AT&T Universal Card Services where she developed the bankruptcy, probate, internal and litigation processes.Ā
She is the author of āRecovery Management: Collecting the Uncollectible Account.āĀ
