Thursday, April 13, 2023 1:45pm – 2:30pm
Topic: The only thing more expensive than hiring a professional is hiring an amateur
Description:
In 2022 credit unions lost tens of millions of dollars in courtrooms across America for “Wrongful Repossessions”, for individuals killed in repossessions, and for illegal and UDAAP scams by unprofessional repossessors. No matter how much insurance your credit union carries, no matter what the “HOLD HARMLESS” says, the one who will bear the weight of these practices will be YOUR CREDIT UNION.
The legal landscape has drastically changed as it relates to repossession and now more than ever you must use a professional asset recovery specialist who is fully knowledgeable of these changes. When you assign a vehicle for repossession to a recovery agency or agent that action essentially makes you a partner with the repossession agent in the recovery process.
Choosing the wrong agent can prove to be a very costly mistake both financially and reputation wise.
As a lender there is no action that carries any higher risk of litigation than a repossession, and court decisions clearly defines the act of repossession to be an action which holds your credit union responsible for any and all problems which occur during that entire process.
Does the agent you have chosen to perform this high-risk action have the knowledge and expertise to perform the recovery in a professional, legal, and CFPB compliant manner? Do they have the proper training required to avoid the risks of litigation and bad publicity? Do they carry the proper insurance and is their bond valid? Are they properly licensed where required?
Be advised the agent you choose may hold the future of your credit union in the palm of their hand and the decision you make as well as the process you used for your selection may be the crucial element in a class action lawsuit.
Auto loans are the third largest category of outstanding consumer debt, after mortgages and student loans. In recent years, the cost of vehicles has risen substantially, leading to increased borrowing. Over the last year, the CFPB has increased its monitoring of the credit union auto lending market.
We have seen the number of lawsuits and complaints increase as the CFPB has made it very easy for Consumers to submit complaints about credit union auto loan products, and about other credit union financial products and services, by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
The CFPB has gone so far as to encourage employees who believe their credit union may have violated federal consumer financial protection laws to send information about what they know to whistleblower@cfpb.gov.
The Consumer Financial Protection Bureau (CFPB) appears to be starting 2023 right where it left off in 2022. On December 20th, they hit Wells Fargo Bank with fines and civil penalties of $3.7 billion dollars , now it’s Credit Acceptance Corporation’s (CAC) turn. This should come as little surprise considering as far back as 2018, they’d still managed to make a profit with 35% of their loans defaulting. The only way to make that work is with extreme interest rates, fees, and some heavy-handed collections efforts.
Attend this (these) informative sessions presented by Eagle Group XX/USA founder and facilitator Ron Brown, benefit from his 40 plus years in the recovery industry and discover the vital elements needed to ensure proper vetting and the most effective methods to obtain fast and compliant service, at a fair price while protecting your credit unions assets and reputation.
