Lenders and Their Recycled Repossession Orders
"Old Paper"Lenders have a tendency to pass old orders around to different auto repossession companies. Every veteran agent has been through it when they talk to a debtor and they hear “I told the other guy I would pay” or “Are you with – insert your competitor’s name here”. Immediately you know you have a repossession order in your hand that someone else has worked.
I often wonder if the lenders do this to see if agents are working accounts or if they do not trust us. I am really not sure, but several problems arise when lenders pass around “old paper” between agencies.
For one, they are wasting the time of every repossession company that has been issued that order. Often times they do not share information that the previous agent had uncovered and this results in the new agent doing the same work all over again. If the old agent was not paid a close fee, then the lender benefited for free. Not only did they cost the agency money in gas and wear and tear on their truck, but they also got information for free that they could not have gotten over the phone. Then they pass the previously worked repossession order to the next agent who again wastes time and money on it.
Recylced Auto Repossession OrdersThis can be very frustrating for an agent to deal with whether he is getting recycled orders or his orders are taken away and given to someone lese. If a lender gets a reputation for passing “old paper” around, it can cause agents to have a negative approach to every order that lender issues him. Many agents will see an order from that lender and immediately decide that they are not going to give it their all because ultimately, the lender will pull the order and give it to someone else. They may figure that the order has been worked to death by their competitor and not worth the effort.
Often times, an agent will work an account very hard with drive bys, door knocks and verbal pushing that slowly breaks the debtor. They spend time and effort wearing the debtor down to a point that he is ready to give up the collateral. Right around that time, the lender gets impatient and cancels the order. If the repossession company is working contingent for that lender, the company and the agent that worked the account get nothing. Then the lender reissues the order to another company in the area. The new agent goes out and checks for the vehicle and finally makes contact with the debtor. The debtor is so tired of the repoman coming by his house that he gives the collateral up immediately. The new agent shines in the eyes of the lender because he got the vehicle so quick, when the truth is the old agent did all the work. The new agent got “thrown a bone” and through someone else’s hard work, was made out to be a hero.
Of course, this is only true if the agent that has had the paperwork for a long time is actually working the account. That he has not lost it under his truck seat and he runs by the addresses that he has and hits the door every time he is in the area. The lenders need to learn to be patient and develop a good working relationship with auto repossession companies that are professional and are aggressive in getting their collateral picked up. Lenders need to be loyal to the companies that have proved themselves worthy. They need to stop passing “old paper” around so easy and give an agent time to put the right amount of pressure on the debtor that it takes to get the collateral recovered. If the agent is given the time to do this, then he will feel that he has gotten rewarded for his efforts.