The American Repossessor

National Auto Loan Delinquency Rate Hits Lowest Level Since TransUnion Began Monitoring Variable
By Susan Marston

According to TransUnion’s quarterly analysis of trends in the auto industry, the national 60-day auto delinquency rate (the ratio of auto loan borrowers 60 or more days past due) reached its lowest level since TransUnion began tracking the variable in 1999. For the first quarter of 2011, it stood at 0.49 percent.

On a national level, auto loan delinquencies fell 17 percent quarter over quarter (4Q10: 0.59 percent) and 25.8 percent year over year (1Q10: 0.66 percent)

“Continued improvement in auto delinquencies is a reflection of the stronger auto sales market. …more…

A.T. Kearney’s 15th Annual Automotive Study Indicates U.S. Auto Sales Volumes Will Trend Back to Historical Levels by 2013
By Susan Marston

Forecasts 13.2 million new units sold in 2011 and 16 million in 2013

Buyers from the 15 million post-recession “newly sub-prime” group could be a $3.2 billion opportunity for original equipment manufacturers

Southfield, MI (May 17, 2011) — A newly released study by A.T. Kearney forecasts 13.2 million new autos will be sold in the U.S. this year. The study further anticipates an upward trend toward pre-recession levels of about 16 million units by 2013. Since 2007, total new and used pent-up demand has accumulated to 32 million units, of which more than nine million will materialize in the new vehicle market over the next five to seven years. The remaining 23 million units will sell in the used-car market.  The study cautions, however, that the availability of financing, total cost of ownership and the unfolding events in Japan will impact vehicle sales in both markets. …more…

NADA’s Latest Dealership Financial Profile Shows Growth in New-Vehicle Sales, Store Profits
By Susan Marston

Auctions Jump into Action After Flooding & Tornados
By Susan Marston

Flooding at Harrisburg Auto Auction

In recent weeks, the Deep South has been hit by the two-fisted fury of devastating tornadoes that have ripped apart places like Tuscaloosa, Ala., and rising floodwaters from the Mississippi River that have sunk towns along the Delta, leaving many injured, dead or homeless in their path.

Disasters such as these touch almost every aspect of a community’s livelihood, including everything from homes and businesses to churches and schools. …more…

AFSA Recaps Latest FTC Discussion about Consumer Rights Regarding Debt Collection
By Susan Marston

Clear direction about whether a repossession agency or lender can contact debtors through some of the latest technology methods such as cell phones or social media remains uncertain, according to the American Financial Services Association.

AFSA staff members recently attended a workshop hosted by the Federal Trade Commission on consumer protection related to debt collection and new technologies. With advancements in technology, AFSA pointed out that debt collectors are relying more on pre-recorded messages to contact consumers and are expanding communication to third parties, such as relatives, employers and neighbors about the primary borrower, which can cause problems for the consumer.

“Most of the new methods for debt collectors to communicate with consumers — e-mail, cell phones, and social media — are either not regulated or lack clarity in current regulations like the Telephone Consumer Protection Act and Fair Debt Collection Practices Act,” the association asserted. …more…

BREAKING NEWS…… LENDERS BE AWARE! REPOSSESSION SCAM HITS THE LENDING COMMUNITY
By Susan Marston

If there were not enough negative news regarding our industry, whether it be Neanderthal TV programs, to news articles illustrating how dangerous our industry can be via debtors and field agents actions and now, now we have a SCAM that is hitting our Clients/Lenders – national financial institutions and credit unions alike.  I was made aware of this by a SourceOne Adjusters/SkipCo Auction Company, a repossession/auction company in Ohio, and that some of their clients have been on the receiving end of this.

This is information that you should forward to all your clients, neighboring repossession companies, vendors, your employees, trade associations and anyone else that you think should know about it,  so that they can be forearmed should this happen to them, or their clients.

A Look Inside a “Private Repossession”

In late 2010, we were made aware of a new type of scam to hit the financial community. A newly discovered company (we are using the term company loosely for the sake of this article) targets a bankrupt consumer (using free internet classified ads) to arrange for a “private repossession” and then holds the collateral until the lien holder coughs up the cash to get it back. …more…

Bond. James Bond.
By Susan Marston

Shaken, but not stirred, old chap!

No, wait a minute, that’s not the bond I wanted to talk about.  The bond I’ll discuss today is something else entirely.

Governments frequently have requirements that businesses and individuals obtain and maintain a bond as a condition of doing a particular type of business.  Businesses whose activities might injure others , in particular, find themselves the targets of bonding requirements. …more…

Industry Unity or Industry Rollup. It’s Our Choice.
By Susan Marston

The collateral recovery industry is more similar to other service-oriented industries than you might think. Like other service industries, much of the direction, trends, policies, programs, levels and types of service, as well as pricing, are usually client driven. However, there’s a distinct difference between client driven and client dictated. Most collateral recovery agents and business owners agree our industry is being dictated by our clients and by forwarding companies.

Fifteen years ago, the overall landscape of the recovery industry was much different. Beepers were more prevalent than cell phones.  Recovery agents received assignments via fax and were not required to process accounts on numerous web-based systems. Agents only updated clients when they had time and when they had something important to report. There were no certification programs. Agents were rarely, if ever, sued and insurance premiums were reasonably priced and affordable. Recovery agents were also able to define their service standards and more importantly, set their own prices. For many years, when the collateral recovery industry provided professional services, clients paid a fair and competitive price. It’s important to note 15 years ago, there were significantly fewer agents and many more lenders. …more…

Is your focus where it should be?
By Susan Marston

By Susan Marston

No matter what the economic climate is, there are many businesses that still grow, regardless of what is happening in the economy as a whole.  Repossession companies are no different.

I am often asked about how to grow a business, normally by eager company owners that want things to happen immediately but there are no short cuts.  There is no magic wand as it takes time to grow.  It can take on its own identity which can often become, a complex ‘life form’.

If you don’t have the expertise in your company to grow it, you won’t grow it and if you don’t change that, then the company won’t change either.  Growing a company starts at the top and if the ‘top’ doesn’t have the skills (and I don’t just mean repossession experience) or the knowledge and expertise to take the company to the next level, it won’t happen.

You have to have a direction…a plan…so you know exactly where it is you want your company to go and a planned route on how to get it there.

I have seen many company owners lose focus on their company because their attention is diverted to areas of business they have no experience in.  So many  listen to other company owners, who too don’t have the knowledge base to ‘change up their company’ and make it market ready, and again they end up losing focus because now they are more confused than ever before. …more…

Recent and Relevant Arkansas Case Law
By Susan Marston

Michael Howk Director of Education RSIG

An Arkansas Appeals Court recently affirmed the conviction of a Debtor for breaking and entering, theft, and battery.

The scene of the crimes was the Crown Inn Motel, which the Debtor called home. When the Repossessor attempted to repossess the Debtors purple Jeep, the Debtor came out of his room at the Crown, “screaming and cussing and hollering.” Debtor then opened the passenger-side door of the tow truck and jerked Repossessor’s keys out of the vehicle. After the Debtor was unable to remove the Jeep from the lift, he approached and struck the Repossessor several times on the hand and arm with a “Club” brand steering wheel theft-protection device.

The Debtor was charged and convicted of breaking or entering, because he broke into the tow truck; theft of property with a value of $500 or less, because he knowingly took unauthorized control over the tow-truck keys with the purpose of depriving the Repossessor from their use; and battery in the second degree with the purpose of causing physical injury to another person, by causing physical injury by means of a deadly weapon other than a firearm.

This is not the only case in Arkansas that supports the actions of Repossessors. …more…