Just like elephants recognizing their own reflectionāa sign of intelligence and self-awarenessācollection agencies and repossession vendors must be able to see themselves clearly through audits.
A strong audit process isnāt about playing āgotchaā or simply checking boxes.
Itās about recognizing weaknesses, strengths, and blind spots.Ā
Embracing the Audit as a MirrorĀ
Letās face it: no one enjoys being audited. Especially when the auditor is an outsider. It can feel intrusive, even a little threatening. But the best audits act like a mirrorāoffering a clear, unfiltered reflection of whatās really happening, not just what leadership hopes is happening.Ā
That reflection can be uncomfortable. But it can also be validating. A solid audit doesnāt just expose compliance gaps or inconsistencies; it can also highlight where your team is doing wellāwhere processes are being followed, documentation is consistent, and expectations are understood. That kind of feedback is gold. It allows you to build on whatās working, not just fix whatās broken.Ā
Common Mistakes That Undermine the ProcessĀ
Even with the best of intentions, audit processes can go off the rails. Here are some common pitfalls that weaken both the audit and the relationship:Ā
- Overwhelming the agency or vendor: Sending a full squad of auditors can feel more like an ambush than a review. It often disrupts daily operations and creates unnecessary anxiety.Ā
- Requesting irrelevant documentation: Donāt ask for documents that arenāt part of your actual audit criteria. It signals disorganization and makes the process feel arbitrary.Ā
- Shutting down dialogue: An audit shouldnāt be a one-way street. Failing to give the agency or repossession vendor a chance to provide context or responses to findings creates frictionāand often misunderstanding.Ā
- Losing perspective on scope: If you find one instance of non-compliance out of a hundred, thatās importantābut itās also context. Donāt treat it like a systemic failure without digging deeper.Ā
- Surprise audits as power plays: If you feel the need to conduct a surprise audit with no communication or context, you may already be past the point of repair in the relationship. Audits should be tools for improvement, not ultimatums.Ā
The Mirror Doesnāt LieāBut It Can TeachĀ
Self-awareness is one of the highest forms of operational intelligence.
When collection agencies and repossession vendors can honestly look at the reflection audits provideāand when auditors treat the process as a collaborative evaluation rather than a compliance hammerāeveryone wins. Mistakes are corrected, strengths are reinforced, and the entire system becomes stronger.Ā
So, the next time you prepare for an audit, donāt brace for a battle.
Look into the mirror. You might be surprised by what you seeāand what you can learn.Ā
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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.
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Photo Credit for Elephant Photos above:Ā Copyright Dennis Hammond
