BREAKING: Wells Fargo Dealer Services to Merge 60 Regional Collection Teams
Wells Fargo Dealer Services is in the process of consolidating its network of collection centers, a company spokeswoman confirmed to Auto Finance News.
“Wells Fargo Dealer Services is reorganizing its collections activities in order to improve the customer experience,” the company said in an emailed statement. “Dealer Services is evolving to meet changing needs of dealers, customers, and the marketplace — and this change to our collections structure is a good example.”
The bank currently operates 60 regional business centers, which are run by managers in charge of overseeing regional credit teams, funding employees, and back end collections, an unnamed source with knowledge of the company’s structure told Auto Finance News. Collection teams can make up 25% to 30% of the staff at these centers, and are largely responsible for overseeing accounts 30 days or more delinquent. Employees were informed last week of the changes.
“We want to retain as many collectors as possible and will offer relocation assistance to those willing to move,” the spokeswoman said.
The company has several centers in Texas including offices in Irving, Fort Worth, Austin, and two in Houston all run by managers who report to a statewide leader, the unnamed source explained. Funding teams may be next, they added.
Funding teams are made up of four to 12 employees, and the largest centers — including some in Texas — are responsible for funding on up to $1 billion in outstanding auto loans.
In September, an investigation under the Department of Justice and Comptroller of the Currency resulted in a $24 million consent order in the fall for illegal repossession of vehicles from 413 servicemembers. Wells Fargo Dealer Services has also gone through a couple of high level executive changes in the past months, as well, including the appointment of Laura Schupbach as head of the bank’s auto lending arm, and the departure of long-time Executive Vice President Bill Katafias — who was recently named chief executive of CRB Auto.
