In an effort to curb compliance issues related to wrongful repossessions, ALS Resolvion has implemented a system that links lenders and repo agents in real time.
“Over the past couple of years, the Consumer Financial Protection Bureau has started to focus more on the repossession activities within lenders that they regulate,” Michael Levison, chief executive at Charlotte, N.C.-based ALS Resolvion, told Auto Finance News, adding that of the 110 lenders ALS Resolvion works with, nearly all are audited by the CFPB.
The “mobile only” policy — which requires repo trucks to be equipped with mobile technology — enables lenders to communicate with repossessors in the field if a loan is brought current and the repossession order is canceled. It also aims to prevent lenders from taking customer payments once repossession has occurred.
“Breakdowns in that communication chain have been a major contributor to these unintended repossessions,” Levison said.
ALS Resolvion’s new “mobile only” policy is already integrated with the three main repossession management systems in the industry, Levison said — Recovery Database Network, iRepo, and iBEAM. The program was initially piloted nationwide in a soft launch on June 1. The full program was rolled out July 1.
