At least three service providers in the auto finance industry are waiving certain fees or subscription costs for lenders and dealers as the industry grapples with the ongoing fallout of the COVID-19 crisis.
Digital Motors, a digital retailing fintech that creates online stores for dealerships, is temporarily waiving its setup fee and monthly software subscription fees amid store closures. Currently, 42 states have active shelter-in-place orders.
CarOffer, too, is supporting dealerships with the early release of its Consumer Buying solution, which it is providing for free until the pandemic subsides. The tool is designed to help connect auto dealers with consumers that want to buy, sell or trade a vehicle through integrated document management and customer relationship management systems.
In addition, artificial intelligence-powered fraud solution PointPredictive is providing a free license for its SyntheticID Alert to auto lenders for the remainder of the year. The platform allows financiers to scan and identify synthetic identities within both their existing loan portfolios and new applications.
Losses from fraud reached roughly $7 billion in 2019, Chief Fraud Strategist Frank McKenna previously told AFN.
“In times of crisis, fraud always rises, whether it’s due to con artists and scammers taking advantage of vulnerable people out of work, or fraudsters taking advantage of the chaos — everyone in the industry should be on the alert,” McKenna said.