Ara, naf association reveal initial results of repossession efficiency project auto remarketing database usa reviews

Dave Kennedy and Les McCook of the American Recovery Association shared some vivid anecdotes originating from meetings with Jack Tracey and Joel Kennedy of the National Automotive Finance Association along with leadership of close to 30 finance companies with large and small portfolios.

“They saw the hardship that was being placed upon their vendor network. And in being a good business partner and caring about the other side, they are now rethinking their strategy,” said McCook, ARA’s executive director, during the annual Non-Prime Auto Finance Conference hosted by the NAF Association. “What’s important here is this is a beginning,”

That beginning is ARA and the NAF Association using last week’s conference as the springboard to announce the results of their first joint effort to establish a minimum compliance standard for third-party repossession vendors that work directly with an auto finance provider, not through a forwarding model.

Dave Kennedy, who is ARA’s president, shared an analogy with conference attendees in an attempt to summarize the entire situation; one that might have generated extra impact with individuals who have children currently attending a college or university or recently graduated.

“Say you go to college and you get your degree. You go to school at say Temple, and you pass the baseline standards for that degree. But then your employer says, ‘We like you, but we now require that all of our employees to go Harvard, so you’re out of a job.’ That doesn’t make any sense,” Kennedy said.

“The key is to bring efficiency. All of these training programs meet the basic criteria. This is going to save hundreds of thousands of dollars for lenders. They’re all great programs. Now if an agent can prove he has one, it’s going to save hundreds of man hours,” Dave Kennedy said.

Joel Kennedy, an NAF Association board member, former finance company executive and now director with Spinnaker Consulting Group, emphasized the concept of bringing efficiency and addressing potential problems that might be keeping finance companies “up at night.”

“It’s all about trying to drive better efficiencies and synergies for the process that we have right now,” Kennedy said. “The whole point is each individual finance company has a responsibility from a third-party vendor management standpoint to make sure they’re managing their own vendors as if it was their own company. With repossessors, there is additional risk involved given the customer engagement.

“What we came up with was a baseline set of standards that can be ascribed to by all of the NAF Association members to say, ‘Here is the bare minimum of what we think you need in order to safely management this relationship.’ There really isn’t any kind of guidance from any regulatory body that says chapter and verse how you manage this relationship and risk,” Kennedy continued.

“I think this is the kind of thing that not only can provide guidance to our members to streamline and build efficiencies where we can all spend a little less time schlepping and more time analyzing on the high-value, high-risk targets we can get solved,” he said.

“The next steps are to carry this through and see how far we can take this,” he continued. “Can we collaborate on data? Can we collaborate on sending the field guys to chase information? Can we get into more self-reporting for the recovery agents where we can get the data into a repository and all the members can utilize it?”