Hyundai Capital America is utilizing a recovery method called a “pull-ahead” program, which uses data and analytics to determine when to apply more intense collection treatment earlier in the recovery cycle, said Bill Miller, the captive’s senior director of collections and recovery.
Where some recovery -flag borrowers earlier and applies additional treatment typically reserved for later stage accounts.
For example, consumers who are less than 30 days past due on their loans might receive earlier skiptrace treatment, if the account is classified as a no-contact or slow-pay borrower.
Additionally, the company monitors pay rates to identify under-performing accounts, evaluates contact restrictions, and will consider advancing repossession assignments when the risk is high.
“The general message is, if you have an account with elevated risk that by X day is not cured, it might be time to pull that lever on the more intense treatment earlier,” Miller told Auto Finance News. “A bottom-up operational forecast provides a meaningful sense-check, and adds to the accuracy of a risk-based loss forecast.”
Hyundai has found “significant success” with the program, he said. Miller will be discussing those methods during a presentation at the 2017 Auto Finance Summit held Oct. 25-27 at the Wynn Las Vegas. To learn more about this year’s event — or to register — visit the Summit’s homepage here.
