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The ripple effect: Distressed repo industry threatens lender losses

Auto loan losses are poised to rise — but not because consumers are failing to make payments. The issue runs deeper, hinging on repossession agencies bogged down by increased competition and rising costs. Repossession companies, typically family-owned businesses passed down through generations, are succumbing to industry challenges. Florida, for one, has lost 23% of its […]

Asset value approach to repos props up lender ROI

DALLAS – Lenders need to rethink their approach to repo scorecards and put an emphasis on asset value to increase their return on investment, Primeritus Chief Executive Mike Thomas told attendees at the ALS Resolvion Innovations in Recovery conference last week. Some of Primeritus’s clients have begun to reap the rewards of a value-driven approach, […]

KAR Auction Bolsters Tech Offerings With Acquisition of Clearplan

KAR Auction Services is tapping into technology to better its operations with its acquisition this week of Clearplan. Clearplan, a Reno, Nev.-based company that offers a digital hub for repossession workflow management, logistics, and reporting. The digital platform connects thousands of recovery agents and lenders while enabling real-time communication to more efficiently list, log, and […]

Hudson Valley FCU Settles DOJ Investigation Over Unlawful Auto Repossessions

Hudson Valley Federal Credit Union has agreed to pay the Department of Justice $95,000 following allegations that the lender violated the Servicemembers Civil Relief Act, a law designed by the DOJ to ease financial burdens on servicemembers during periods of active military service. HVFCU, based in Poughkeepsie, N.Y., allegedly repossessed nine vehicles owned by SCRA-protected servicemembers […]

CFPB Identifies Deceptive Auto Loan Servicing Practices

Recent auto loan servicing examinations conducted by the Consumer Financial Protection Bureau found fraudulent and unfair practices related to billing statements and wrongful repossessions, the bureau announced Thursday. The wrongful acts were publicized in the CFPB’s  Supervisory Highlights report. While the report does not impose any new legal requirements — publishing the findings serves as a […]