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Old 11-02-2011, 10:11 AM   #1
SeaKelly
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Default The 'C' Word...

Yes, it is the 'C' word no recovery agent ever wants to hear...Contigency! Contingent cases clearly cost the agents...no close or cure fees and usually a ridiculously low repo fee to boot. A thought crossed my mind when thinking of the violence toward recovery agents recently. How many of those incidents involved contingent cases? It would be interesting to see if there were a direct correlation.
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Old 11-02-2011, 02:39 PM   #2
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To be honest I have not noticed a trend with that at all. Usually the banks that do not want to pay a close fee have bad information anyway and we are just out doing skip work for free!
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Old 11-02-2011, 02:53 PM   #3
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Don't due contingent. Pay me a repo fee, resolve/cure, or close or give it to my non-insured competitor
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Old 11-02-2011, 03:33 PM   #4
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Originally Posted by FIVEPTOHH View Post
To be honest I have not noticed a trend with that at all. Usually the banks that do not want to pay a close fee have bad information anyway and we are just out doing skip work for free!
So in your area, you are seeing more banks not wanting to pay a close fee? What about BHPH or subprime lenders in your area?
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Old 11-02-2011, 03:40 PM   #5
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Don't due contingent. Pay me a repo fee, resolve/cure, or close or give it to my non-insured competitor
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Old 11-02-2011, 07:44 PM   #6
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Quote:
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So in your area, you are seeing more banks not wanting to pay a close fee? What about BHPH or subprime lenders in your area?
Yes, it is very hard to get banks to pay a close fee. I do not work for any BHPH or subprime lenders mainly because right now I have a bunch of good clients that tend to give me good information.
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Old 11-02-2011, 10:30 PM   #7
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Would you say that not being provided good information on a repo is the #1 issue for recovery agents?
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Old 11-02-2011, 10:48 PM   #8
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Quote:
Originally Posted by SeaKelly View Post
Would you say that not being provided good information on a repo is the #1 issue for recovery agents?

Yes, I've had several addresses given to me and utilities havent been active in two years in one case and 6 months in another. I also hate getting files that have a vin and make and model and nothing else. No tag, no color, no apartment numbers or incorrect apartment numbers. I can understand not giving up the debtor SS number but the more information we have the better we can locate the car/debtor quicker most of the time. POE is always helpful too.
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Old 11-02-2011, 11:23 PM   #9
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Would you say that not being provided good information on a repo is the #1 issue for recovery agents?
The biggest complaint that I hear is not getting compensated enough as a business to turn a profit. When had my company, I did not just want to make a living. I wanted to make a profit. These auto finance companies would close their doors if they just were breaking even. If their profit margin was that of many auto repossession companies, they would walk. There is no sense at all in being in business if the end result is not an increase in wealth.
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Old 11-03-2011, 09:56 AM   #10
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Supply and demand in a nutshell.
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Old 11-03-2011, 09:56 AM   #11
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Wow! When I saw the title The C word, I was afraid to open it. I was thinking of another word and thought someone had called Kelly that. Thankfully I was wrong!
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Old 11-03-2011, 10:20 AM   #12
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Wow! When I saw the title The C word, I was afraid to open it. I was thinking of another word and thought someone had called Kelly that. Thankfully I was wrong!
Skippy were you going to defend my honor???
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Old 11-03-2011, 12:17 PM   #13
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This situation is a very simple one.Charge for your services.When a client sends an assignment without a license plate,color,etc.Call them back and request it!! Document this in your reports...believe it or not,managers do read the reports and act accordingly.Charge for your services.Ever getan assignment,go to the address and the vin is covered.Go back and let the client know that a unit fitting the description was there,but you could not verify because you were lacking the information...simple as that.If you keep doing this they will change their procedures.Also,charge for your services.Don't do contingency work!! Look up the word contingency.Good luck and go out and make some money!!!!!!! Ken
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Old 11-04-2011, 07:40 AM   #14
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Getting back to the 'C' word....contingency. How many banks and credit unions are paying on a contingent basis? Or is it mainly BHPH, sub-prime lenders?
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Old 11-04-2011, 09:40 AM   #15
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All of our banks and CU's pay a close, but it is not a full repo fee.
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Old 11-04-2011, 10:40 AM   #16
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What do you consider a decent cure/close fee? And should it be pro-rated based on the length of time you have worked the case?
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Old 11-09-2011, 09:00 AM   #17
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we all do contingent...none of us like it....no-one likes to work for free....2 months ago i cut off 4 forwarders and Santander bc of low repo fees, contingent, lack of skip work on the forwarder end, endless updates, pissy acting collectors(no doubt worked at Valero last month), and mainly bc i learned this: MY SUCCESS RATE WENT SKY HIGH WHEN I WORKED QUALITY CLIENTS.....as an owner i look at success rate with each client...if they send me regurgitated/reassigned accounts on a contingent basis and the success rate is below 55%, i lose money...volume of that type of accounts just mean i bleed money faster....i am in business TO MAKE MONEY....i will work contingent for any client who treats us well, acts like a partner in moving the paper, & has a decent fee(325 lowest) with a good success rate....success rate tells many things....mainly what kind, and how much they work the accounts....rabid forwarders who push paper rarely make grade on this....if those individuals dont show profit for their company, they'll get re-assigned soon enough and hopefully the new boss will value what we do and change the mix....i also learned that agents always want more.....they'll chase those unprofitable accounts(on my dime) and the good ones suffer....so i took that away from them and they only get profitable accounts....it was scary at first, but after the first month i noticed my recovery rate was bumping 70% and the accounts poured in....i have two more in my sights now and soon will give them the notice....business is a two way street meaning BOTH sides must profit....i will give all for any client who works as hard as we do, i will devote ALL of my assets to those, i will not continue to prop up people who do not....when the dust settles, i'll be standing and so will they...others, not so much

to answer SeaKelly's question....most of the good clients pay a 50 dollar close just to cover costs, they also pay a 125 close for positive resolution....i have some very good clients who pay 375 and up on contingent, they work with us and it shows

for you owners on the fence, change comes from strong men of integrity....this is working very well for us....help with positive change
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Old 11-09-2011, 09:15 AM   #18
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Great post!
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Old 11-09-2011, 10:55 AM   #19
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I read somewhere once that when you're out of quality, you're out of business. Perhaps lenders, as well as forwarders, should take a moment to reflect upon that statement especially when it comes to fees & information provided to agents on cases. Quality pay = quality work.
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Old 11-11-2011, 07:11 AM   #20
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Bryan, for some time I have been hearing from company owners that their recovery rates are 605, 55%, 50% and sometimes a bit lower. I was quite surprised as those sorts of numbers as that would never been acceptable when I had my repossession business. As I heard that range of numbers again and again, I came to a realization that is was not the repossesors that were doing a poor job, but rather the auto finance companies and forwarders that lacking on their end. The lender should give accurate info as to where the debtor has the car. The repossession agent can then do his job which is pick up the collateral.

I agree whole heartedly. Owners of repo companies need to take a hard look at the clients they have that cost them money rather than make them money. Cut the dead weight and focus on clients that will work with you and not the ones that will put you out of business.

Quote:
Originally Posted by Bryan/Faith Financial View Post
we all do contingent...none of us like it....no-one likes to work for free....2 months ago i cut off 4 forwarders and Santander bc of low repo fees, contingent, lack of skip work on the forwarder end, endless updates, pissy acting collectors(no doubt worked at Valero last month), and mainly bc i learned this: MY SUCCESS RATE WENT SKY HIGH WHEN I WORKED QUALITY CLIENTS.....as an owner i look at success rate with each client...if they send me regurgitated/reassigned accounts on a contingent basis and the success rate is below 55%, i lose money...volume of that type of accounts just mean i bleed money faster....i am in business TO MAKE MONEY....i will work contingent for any client who treats us well, acts like a partner in moving the paper, & has a decent fee(325 lowest) with a good success rate....success rate tells many things....mainly what kind, and how much they work the accounts....rabid forwarders who push paper rarely make grade on this....if those individuals dont show profit for their company, they'll get re-assigned soon enough and hopefully the new boss will value what we do and change the mix....i also learned that agents always want more.....they'll chase those unprofitable accounts(on my dime) and the good ones suffer....so i took that away from them and they only get profitable accounts....it was scary at first, but after the first month i noticed my recovery rate was bumping 70% and the accounts poured in....i have two more in my sights now and soon will give them the notice....business is a two way street meaning BOTH sides must profit....i will give all for any client who works as hard as we do, i will devote ALL of my assets to those, i will not continue to prop up people who do not....when the dust settles, i'll be standing and so will they...others, not so much

to answer SeaKelly's question....most of the good clients pay a 50 dollar close just to cover costs, they also pay a 125 close for positive resolution....i have some very good clients who pay 375 and up on contingent, they work with us and it shows

for you owners on the fence, change comes from strong men of integrity....this is working very well for us....help with positive change
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