Announcement

Collapse
No announcement yet.

Lenders and Their Recycled Repossession Orders

Collapse
X
Collapse
  •  

  • 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.

    06lendersandtheirrecycledrepossionorders.jpg
    Recylced Auto Repossession Orders

    This 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.
      Posting comments is disabled.

    Latest Articles

    Collapse

    • Repo Agents Hate To Door Knock
      by BRADMIN

      The Repo Man Is At the Door

      Nobody wants to door knock, they just want to steal the car. Repo agents always want more time to do a drive by and hope that the vehicle will eventual turn up. They do not want to scare the debtor into running or hiding the vehicle by tipping him off that he is up for repossession.

      There are several problems with that way of thinking. The first is that the vehicle is not showing anyhow and the second is that the debtor probably already knows...
      12-28-2018, 07:23 PM
    • Flacars con 2010
      by BRADMIN
      Education
      This was my first time to attend a FLACARS convention and I have to say I was impressed! Everything was first class from the food, to the resort, to the seminars. There were seminars on proposed Florida legislative changes, fleet safety operations and the Fair Debt Collection Practices Act. LPR technology was presented by two vendors and there was also a collateral remarketing seminar. The highlight of the conference was an awesome skip tracing seminar, which was taught by Michele...
      12-28-2018, 06:28 PM
    • Repossessions and Collateral Damage
      by BRADMIN

      Accidents Happen

      Repo agents are often dealing with volatile situations that put an enormous amount of stress on them. There are times when they are snatching a car from a tight space. Many times agents are driving at night and are sharing the road with sleepy drivers, drunk drivers and have their sight hindered by the darkness. If you are going to be in the repossessing business, then you must come to terms with the fact that accidents are going to happen. Collateral is going to get...
      12-28-2018, 06:25 PM
    • Handling Personal Property
      by BRADMIN
      Personal Property
      Repossession companies have to be careful with personal property that is found in the cars they pick up. If property is mishandled, damaged or lost, it could cost your company money. You need to make sure that you follow your state laws as well as the lender’s contractual agreement with you when it comes to personal property. You need to do a detailed inventory of all personal property found in the vehicle. Place all of the personal effects found in a cardboard box and label...
      12-28-2018, 06:23 PM
    • Give Back to the Community
      by BRADMIN

      Repossession Companies Can Donate To Many Worthy Causes

      I do no think that I can neglect this area in the writing of articles on how to build a successful repossession company. I truly believe the statement “what goes around comes around”. If you are a dirty player and always out to hurt people, you will get it paid back someday. Those paybacks can really hurt. Being a business owner is a big responsibility in more ways that one. Sure it is difficult to manage employees, keep your trucks...
      12-28-2018, 06:20 PM
    • Lenders and Their Recycled Repossession Orders
      by BRADMIN
      "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....
      12-28-2018, 06:16 PM
    Working...
    X