Delinquencies continue to climb to levels unseen since the financial crisis, which is why many lenders are focused on improving collections practices and bolstering their loss mitigation strategies.
Auto Finance News spoke with four collections experts to pinpoint best practices and optimal strategies for mitigating losses and improving collections. Here are eight tips for improving collections practices:
1. Take advantage of datasets
“How we deal with delinquent accounts now is different from how we dealt with delinquent accounts 10 years ago,” Jeremiah Wheeler, vice president of financial services at DRNData, told AFN. Big data is popular in the auto finance, with more statistics and digital information available than ever before, he said, so auto lenders should really “think outside of the box” to make the most out of it. For example, more than 300 auto dealers are partnering directly with DRNData for its vehicle location data analytics, which provides live alerts for targeting assets.
