There is some great news for automobile repossession companies, but are you prepared?
Auto sales are up. According to MotorIntelligence.com, sales of passenger cars and light trucks are up 10.6% in October of 2013 over last year.
“The figure for outstanding loans is the highest since Experian Automotive began keeping track seven years ago, said a press release…The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone connected to the automotive industry, including consumers, lenders, retailers and manufacturers.” CreditandCollectionNews.com
If loans are at a 7 year high and deficiencies are flat, that means the pipeline for cars to be repo’d is going to start building. Why? Because, deficiencies can only rise. More sales and easier credit means delinquencies and repossessions are going to go up.
The bottom line is skip tracers are going to get busy again and this is likely the beginning of a new cycle of business for all involved. Some of you are already seeing an increase in assignments. You need to be ready not only for increased assignments, but for increased compliance requirements from clients. CFPB laws have added new compliance liabilities. What are you going to do when the lender calls looking for evidence of your company’s skip tracing compliance?
The Unprepared Scenario
You get a letter from your client asking for every call, text, email, and database search for an assignment. Then you get a call, “Things have changed. You need to prove compliance or we can’t use you anymore.”
You don’t have in place what your client is asking for. Now what? Will you be able to stitch together what’s required in a week or a month? No. It will take months and you will likely spend thousands of dollars on a system that will be obsolete by the time it is ready.
Maybe this won’t happen to you. Maybe. But given the market conditions and the drive towards skip tracing compliance, can you afford to take the risk?
Plan Ahead with Compliant Skip Tracing Services
As a business, you’ve got to recognize changes in the market and adapt. Operating any other way means risking years of investment and potentially losing business to a skip tracer who is already building compliance into their services.Plan ahead and make a change now to a skip tracing software service that meets the compliance requirements of your clients.
Case Management is Key
The key best practice for skip tracing compliance is case management. You need to begin linking all your communications to the case—phone, text, email, searches, etc. With good case management, when your client calls, you’ll always be ready. Not only will this improve your compliance with CFPB regulations, but day-to-day operations and efficiency will improve as well. When every part of the case is linked, everyone involved is connected and on the same page, so you don’t have to waste time cleaning up the file later.
If you never get the letter or the call, you’re still way ahead. Because, by linking all your communications, you have created a competitive advantage. You will find more cars faster, at lower costs.
If that letter or call does come, you now have a marketing opportunity to distinguish yourself from your competitors. With a complaint service, you can demonstrate to your clients that you exceed expectations, go above and beyond, and protect their business.
Which Service is Compliant?
If you haven’t tried it, we suggest you take a look at BellesLink. It is a fully-compliant skip tracing software service designed to keep you at the forefront with compliance.
BellesLink links every communication—calls, texts, emails and database searches are all link to a case. Every communication and search is documented and time stamped. Compliance and requests such as “quit calling me” are easy. All channels are informed, subsequent calls are blocked, saving you costly mistakes. With BellesLink, when your client calls requesting your records, you’re way ahead. You’ll be able to prove compliance and your client will know they are working with the best.
Get ahead of your competition. Request a BellesLink demo today.