The American Repossessor

How The CFPB Will Impact Collections

NFA Remembers Repo Legend Barnes

New Recovery Industry Facilitation Organization Aims to Preserve and Protect Lending Institutions’ Brand

American Recovery Association’s New Member-Owned Company Sets New Benchmark and Standards for the Recovery Industry

DALLAS, Jan. 25, 2012 – American Recovery Association, Inc. (ARA), the world’s largest association of recovery and remarketing professionals, today announced the creation of ARMS (American Recovery Management Solutions), a member-owned contract and billing organization. The assignment facilitation model is focused on bringing the benefits of a direct relationship back to the lender and the recovery agent; while offering the single contact and indemnification benefits that the client wants. Continue »

BANK ECONOMISTS SEE GRADUAL IMPROVEMENT IN U.S. ECONOMY

1/12/2012 WASHINGTON – The U.S. economy will continue on a course of moderate growth with relatively low inflation and steady job growth in 2012, according to the forecast from the Economic Advisory Committee of the American Bankers Association.

According to the committee, which includes 11 chief economists from the largest banks across the country, inflation-adjusted GDP growth rose to an annualized pace near the long-term potential of 2.5 percent in the latter half of 2011, and will stay on this path throughout 2012.

“Despite severe shocks in recent years, the economy has shown resilience as it continues a gradual march forward,” George Mokrzan, committee chairman and Huntington Bank chief economist, said.  “The economy is gaining momentum, with strong capital expenditures from businesses and moderate consumer spending setting the stage for sustained growth.” Continue »

NADA: Top 3 Factors Why New Car Sales Will Increase in 2012

NADA economist predicts more than 13.9 million new car sales in 2012

Paul Taylor

McLEAN, Va. (Jan. 5, 2012) – As the U.S. economy continues to improve this year, Paul Taylor, chief economist of the National Automobile Dealers Association, predicts more than 13.9 million new cars and light trucks will be purchased or leased in 2012.

Taylor, who is forecasting sales of 13.945 million new cars and light trucks for 2012 in the U.S., cites three key factors for the increase:

(1)    Aging vehicles,
(2)    Affordable credit, and
(3)    Aggressive incentives.

Continue »

Are Your Dealership Customers on the Federal “Bad Guy” List? By Tom Hudson

You’d be amazed at the stuff that crosses my desk.  Here’s a recent example:

“A Mt. Juliet car dealership has been shut down on suspicion that it has ties to a terrorist organization.  A lawsuit was filed by the U.S. government against a group of overseas banks Dec. 15 in U.S. District Court in New York. It names Cedar Exports & Auto Sales at 7925 Eastgate Blvd. as part of a nationwide network of auto dealers who received money from an international money laundering concern with ties to drug traffickers, some of whom are supporters of Hezbollah.  The United States regards Hezbollah as a terrorist group and blames it for the 1983 bombing of U.S. Marine barracks in Beirut.  The suit alleges that at least $248 million was transferred from overseas accounts to the car dealerships.”

There’s always a risk in taking government allegations at face value before a jury has heard any evidence or has had a chance to weigh in with a verdict, but that didn’t stop me from having a “Yikes” reaction to this particular news blurb. Continue »

Ford Credit Earns $1.8 Billion Net Income in 2011*

DEARBORN, Mich., January 27, 2012 – Ford Motor Credit Company reported net income of $1.8 billion in 2011, compared with $2 billion a year earlier.  On a pre-tax basis, Ford Credit earned $2.4 billion in 2011, compared with $3.1 billion in the previous year.  The decrease in pre-tax earnings is more than explained by fewer leases being terminated and the related vehicles sold at a gain, and lower credit loss reserve reductions.

In the fourth quarter of 2011, Ford Credit’s net income was $611 million, an increase of $244 million from a year earlier.  The increase is more than explained by a favorable, one-time, non-cash item recorded in the quarter related to our net deferred tax liability.  On a pre-tax basis, Ford Credit earned $506 million in the fourth quarter of 2011, compared with $572 million in the previous year.  The decrease in pre-tax earnings is more than explained by fewer leases being terminated and the related vehicles sold at a gain. Continue »

Consolidated Asset Recovery Systems Announces International Partnership with iCompli

Raleigh, N.C. (Jan. 4, 2012) – Consolidated Asset Recovery Systems (CARS), a Raleigh-based leader in repossession and remarketing services, has announced its first international partnership with iCompli, a U.K.-based compliance technology company. iCompli will leverage CARS’ unique Internet-Based Electronic Asset Management (IBEAM™) Web portal through its finance sector facing brand Auto Intelligence to simplify compliance processes for the audit, tracking and remarketing of non-performing assets in localized U.K. and European markets.

“Having an international presence is very useful to CARS and will help us streamline the asset recovery process,” said Steve Norwood, CEO of CARS. “Dealing with international repossessions can often prove cumbersome, and this partnership with iCompli will help us set the standard for recovery worldwide.” Continue »

RecoveryNet Offers LPR Capability Through Subscription-Based Platform

Andy Robinson, PRA Location Services

PRA Location Services contends it has found a way for repo agents to take advantage of license-plate recognition technology without operators needing to invest thousands of dollars in equipment and more.

The Las Vegas-based subsidiary of Portfolio Recovery Associates recently launched RecoveryNet, a subscription-oriented platform that can allow repo agents to submit as many as 500 vehicle plates for a monthly fee of $299. Continue »

FORWARDING CO-OPERATIVE – “ALL FOR ONE, AND ONE FOR ALL”

There seems to be a great deal of controversy within the Repossession Industry regarding an ‘old’ business concept that has been recently introduced – the FORWARDING CO-OPERATIVE,  with emphasis on the world CO-OPERATIVE.

There is a famous quotation that actually encapsulates the very meaning of what a Co-operative is – “ALL FOR ONE, AND ONE FOR ALL” by Alexander Dumas (1802-1870) famous French Author eg., The Three Musketeers, The Count of Monte Cristo.  One could interpret this as representative of  what a Co-operative is all about!

Relliance Inc. is the new addition to the Repossession Industry – a Co-operative Forwarding company model (also known as a Vendor Management Company – VMC)  that is looking to provide the Financial Institutions with a ‘one-stop-shop’ for repossession and remarketing services via a forwarding model that is owned by its members – repossession company owners. (For more information see www.rellianceinc.com). Continue »

ARA Chosen as Vendor of Choice by CU Collections

SmartAuction, Renovo Services Begin Selling Repossessed Vehicles

DETROIT (November 16, 2011) – Ally Financial’s SmartAuction vehicle auction web site and Renovo Services today announced that they have begun selling repossessed vehicles directly from secured storage facilities across the country.

The Renovo company, ReposDirect.com, will utilize SmartAuction as a resource for lenders to sell vehicles quicker, more economically, and with less risk of damage. For dealers, it will be a central source to buy repossessed vehicles nationwide without having to leave their dealership. ReposDirect.com will coordinate inspection and final transport for all vehicles after the sale.

Users of SmartAuction will have access to ReposDirect.com vehicle listings from all secured lots and the site will continually be updated with new offerings. Continue »