Category: News

Redwood City, Calif. — Extending its efforts to help automotive lenders efficiently select agents for asset recovery, Recovery Database Network (RDN) today announced that members of the Recovery Industry Services Company (RISC) Compliant Agent Network (CAN) will be identified within RDN’s recovery management software during the agent selection process.

“The RDN team understands that CFPB compliance is a key issue for lenders,” said Zach Hallowell, COO of RDN. “Being able to distinguish independently vetted recovery service providers is crucial for compliance efforts, and launches the asset recovery process toward a successful conclusion. We’re pleased to partner with RISC and offer lenders a way to select recovery agents in a more intelligent, discerning way.”

Established in 2009, RISC has quickly become a leader in the fields of risk management, recovery industry compliance standards and certification training. Recovery service providers that are members of RISC CAN have been qualified by RISC with a site inspection of the provider’s facility as well as background and bankruptcy checks. RISC CAN members are also certified for professional competency through the Certified Asset Recovery Specialist (C.A.R.S.) National Certification program. RISC’s Vendor Compliance Reporting (VCR) system continually monitors each member to ensure standards are maintained. In addition, RISC CAN members are covered by a $1 million Client Protection Bond.

RISC CAN Members will be tagged with a RISC CAN logo within RDN’s recovery management software on both the approved agent selection screen and the agent selection screen for new and reassigned cases. By clearly identifying RISC CAN members, RDN enables lenders to quickly identify certified recovery service providers.

“By highlighting RISC CAN members, RDN is helping its clients make a more informed choice during the agent selection process,” added Stamatis Ferarolis, President of RISC. “The peace of mind that comes with knowing that a recovery agent is fully compliant with the toughest industry standards is invaluable.” Ferarolis continued, “Agents that are members of RISC CAN reduce a lender’s liability exposure. That increases confidence in the overall recovery process and allows lenders to focus on the other important aspects of their business.”

For more information about RDN’s identification of RISC CAN members, please contact RDN at 817-204-0298, select option #2.

RDN is a provider of software and data solutions related to the recovery of assets for the automotive finance industry and is a subsidiary of OPENLANE, Inc. OPENLANE is a leading provider of online automotive auction platforms and is itself a subsidiary of KAR Auction Services, Inc.

Article by Jonathan L. Pompan

When it comes to the Consumer Financial Protection Bureau’s (“CFPB” or the “Bureau”) compliance expectations, it is important to separate myth from fact.These days, the CFPB is moving full-steam ahead on examining non-banks and banks, dozens at a time, and is not leaving any stone unturned for potential unfair, deceptive or abusive acts or practices in violation of the Consumer Financial Protection Act or other consumer financial laws that fall under its scope

Myth #1: Only large financial institutions are subject to CFPB supervision and examination.

No provider of consumer financial products and services, or their service providers, should assume they are beyond the reach of the CFPB.The CFPB can examine any entity, regardless of size, based on regulatory authority to supervise “risky” financial products and services that it believes are causing harm to consumers.This authority is in addition to the CFPB’s ability to supervise larger market participants in the debt collection, credit reporting, and student loan servicing markets, as well non-bank businesses in the private student loan, mortgage, and small dollar loan markets.(The CFPB also supervises banks with over $10 billion in assets).

Myth #2: An audit program is sufficient to catch non-compliance.

The CFPB expects a proactive approach to compliance. This means not only having a detailed audit program, but also a system for proactively preventing and detecting potential non-compliance with the law before a consumer harm occurs.

The CFPB examines: Board of Director and management oversight; compliance programs; consumer complaint responses; and compliance audits. In addition, the CFPB reviews such areas as operations, marketing and lead generation, third party relationships, internal controls, consumer interaction, information sharing and privacy, and payment processing.

Myth #3: The CFPB only cares about policies and procedures.

Wrong. The CFPB expects written policies and procedures that institutions will design and offer consumer financial products in accordance with federal consumer financial laws and maintain effective systems and controls to manage compliance responsibilities. This means the CFPB will focus both on policies and procedures and actual acts and practices, including consumer level transactions. The CFPB has released a comprehensive Supervision and Examination Manual, and several additional guidance documents and bulletins that shed light on all of the different ways their examiners oversee companies.

Myth #4: Companies are not responsible for the actions of their service providers.

As the CFPB stated in its Bulletin 2012-03, the CFPB expects non-banks and banks to “oversee their business relationships with their service providers in a manner that ensures compliance with Federal consumer financial law.” The CFPB considers a “service provider” to be “any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service.” For more information about the CFPB expectations for effective vendor management, see
“ CFPB Warns of Service Provider Scrutiny.”

Myth #5: The CFPB will give companies that are supervised and licensed by other regulators a pass.

Wrong. All of the CFPB administrative proceedings brought about by the CFPB to date have been against entities that were already regulated on the Federal or state level prior to the creation the Bureau. For example, the CFPB has entered into consent orders with several banks regulated by the OCC, and mortgage related providers regulated by states. In addition, the CFPB has brought lawsuits against licensed attorneys, debt relief providers, mortgage assistance relief service providers, and others. The Bureau also has stated it is in the process of investigating companies and service providers in virtually all consumer product and service markets.

The content of this article is intended to provide a general guide to the subject matter.Specialist advice should be sought about your specific circumstances.

RISC is happy to announce that Bogdan Rentea, of Rentea & Associates has agreed to represent RISC as our outside legal counsel. Mr. Rentea, whose office is in Austin, Texas, has been involved as legal counsel to several collateral recovery organizations and has more than 25 years of legal experience in the self-help repossession field.

Mr. Rentea is known throughout the country as one of the foremost legal authorities on the self-help repossession process and we are truly privileged to have him represent RISC as we move forward in serving the collateral recovery industry.

Bogdan has helped design our RISC CAN (Compliant Agent Network) contract and will extensively review our Compliance and Operations Manual which includes procedures for complying with current CFPB compliance requirements and best practices. He will also review other RISC documents that are designed to assist collateral recovery agency owners in complying with contractual and legal requirements for long term success.

Joe Taylor, Vice President of RISC remembers first meeting known Bogdan Rentea in 1999. “I have listened to many of his presentations on the self-help repossession process and legal decisions attached to the process. I was also privileged to have him review the C.A.R.S. National Certification Program. Bogdan is eminently qualified to serve as legal counsel for RISC and to help RISC advocate on behalf of all industry professionals. Equally important is the privilege to know him as a friend.”

“I am well acquainted with Bogdan Rentea’s extensive knowledge and expertise in the industry and am delighted that he has agreed to serve as our outside legal counsel and look forward to a long and strong relationship” states Stamatis Ferarolis, President of RISC.

Recovery Industry Services Company (RISC) is proud to announce the formation of our RISC Compliant Agent Network (RISC CAN).  We would like to take this opportunity to explain why we feel the need for such a network of professional collateral recovery specialists and to assure all our RISC Agent Alliance members that they are automatically members of CAN.  RISC CAN membership is open to any professional collateral recovery agency owner who can meet the stringent requirements of our network and adhere to the RISC Code of Ethics.

Since its inception in 2009, Recovery Industry Services Company (RISC) has provided compliance training and forms to the collateral recovery industry.  As the provider of the only nationally recognized certification program, CARS®, (pub. 1999) along with Continuing Education courses, RISC has elevated the training standards across the industry.

In 2011, the RISC Agent Alliance was formed to provide further benefits to the recovery industry, including; a $1 million Client Protection Bond, Red Flags Rules training, Data Security training, HR documents, discounts on all RISC training programs, discounts on keys and key codes and a unique, on-line profile of our members.  RISC continues to bring affordable quality products and training to an ever changing and challenging industry.

As the concept of compliance grew from a “buzzword” to a permanent presence in the collateral recovery industry RISC developed the first comprehensive Compliance and Operations Manual that has become a template for compliance and best practices.

With compliance mandates here to stay, the decision has been made to highlight the efforts of RISC to its members by identifying our RISC Agent Alliance members as the RISC Compliant Agent Network (RISC CAN).

Q. Why was RISC CAN (Compliant Agent Network) formed?

First and foremost RISC was formed to help collateral recovery agents improve their bottom line through a variety of services which includes risk management training, agency vetting, agent compliance tracking, agent compliance training, collateral recovery training, professional certification, locksmith training, locksmith supplies, key codes, job placement and recruitment services, and business consulting.

Q. How are RISC CAN members different from trade association members?

RISC is not a trade association or marketing association.  Industry trade associations do an outstanding job in marketing and advocating on behalf of their members, and we encourage all agents to participate and be active in available organizations.

RISC CAN Members are vetted based on objective compliance criteria.  RISC CAN Members are complementary to industry trade associations as they have met criteria to be a RISC CAN Member and can showcase their company via their trade association or online via the RISC website.

Q. Will RISC market and advertise my business if I become a RISC CAN member?

The answer is that you, as a RISC CAN member, have the ability to market yourself via your RISC CAN profile.  Your company can be searched and found on the RISC website by a lender and with your permission the lender can access your unique RISC CAN profile.

Our goal at RISC is to provide the agency owner the tools needed to showcase their professional competency to your client and prospective clients.  It’s up to the agency owner to differentiate his operation from competition.

Q. What services does RISC provide me as a RISC CAN member?

As a member you will receive the following benefits:

• $1 million Client Protection Bond

 

Company Compliance Profile – a comprehensive profile of your company designed to keep your company compliant with current client/lender mandates. The company profile includes:

• Company information
• Services the agency provides
• A copy of your insurance Acord and Workers Comp certificate (if applicable)
• Copies of applicable licenses
• A list of storage lots
• Storage lot inspection reports
• Listing of all your employees

Compliance Documents – compliance made easy by RISC. All necessary compliance documents are within the member dashboard area. You will also have access to the RISC Compliance and Operations Manual designed to make your business compliant in all areas of CFPB lender requirements.

Discounts on all RISC services including:

• The C.A.R.S.® National Certification Program
• The Skip-tracers National Certification Program
• Continuing Education courses
• I-Repo Vendor Comply
• Locksmith training
• Key Codes
• Key Blanks

Best Practices & Business Forms Area – Documents designed to improve your company’s top and bottom lines.  The forms encompass:

• Human Resources
• Marketing
• Operations
• View Screenshot

 

Educational Seminars – as RISC conducts webinars and seminars across the country, these webinars are put online within the member dashboard to access at any time.

Marketing Brochure and Link to Profile – a brochure is created for marketing your company and is updated immediately as your comprehensive profile is updated.  A link to your profile can also be emailed to a prospective client.

Repossession Case Law – specific case law and opinions for every state

Repo’s by Dummies – repossession articles specific to wrongful repossessions.

Benefits Area – discounts on products and services from various vendors

Risk management training and consulting

Expert opinions on legal questions and issues.

Licensed insurance consultant on staff to assist members

Business Consulting

Legislative Template and Industry Synopsis for those who are interested in state regulations

Q. What does it cost for an agency to qualify for RISC CAN membership?

To become a member of RISC CAN you must apply as an agency.  Once you become a RISC CAN member you receive; a $1 Million Client Protection Bond, 15% discount off the retail price to any service we offer including the Certified Asset Recovery Specialist® (CARS®) Program and Continuing Education Programs, Key Codes, Key Blanks, Locksmith training, etc.  By utilizing our services your membership will pay for itself.

Pricing –

The annual subscription fee is now only $795.00, which can be financed monthly.  There is a one-time initial application fee of $295.00 to determine qualification.  The $295.00 application fee also includes one lot inspection and one background check.

Remember our primary goal is to provide our member’s education and training in areas of compliance and risk management.  Once compliant, our goal is to keep you compliant through our use of technology and updated compliance documents.  We are the best value in the recovery industry as no one can match our services and value.

Following the completion of a four market pilot program, American Recovery Service, the original nationwide automotive repossession and skip-tracing firm, has selected RISC – Recovery Industry Services Company as their partner to perform compliance inspections for the entire ARS collateral recovery agent network. RISC has performed in-depth inspections on ARS Agents in Miami, Phoenix, Dallas, and Houston. Inspections are currently being prepared in San Diego, Los Angeles, New York and Chicago, with the remainder of the country to be completed shortly thereafter, all at no cost to the repossession service providers.

ARS is the market leader in nationwide repossession services, which means setting the bar high with respect to their agent network. As part of their industry-leading risk management platform, ARS is dedicated to the ongoing vetting of their entire network of collateral recovery specialists through a well qualified, independent third party. ARS chose RISC for the compliance inspection portion of their vetting process due to RISC’s expertise in the repossession process, knowledge of current compliance requirements, as well as their ability to deliver a superior inspection product. Steven Schelk, Chief Risk Officer of ARS, explains, “RISC is a natural partner for this undertaking; as the recovery industry expert in professional training and certification programs, we can ensure that the inspections are performed by quality, well informed inspectors who understand the businesspeople they are interacting with.” Patrick K Willis, Founder and Chairman of PK Willis adds, “We feel it is our responsibility to partner with our repossession service providers and assist them in understanding the changing regulatory landscape while also providing them with a cost-effective tool they can use to prove that they are compliant.”

While the costs of some compliance programs are significantly impactful, ARS and RISC believe that compliance should be a manageable cost and a shared responsibility. ARS and RISC have negotiated a very low rate for these inspections, which will be performed biannually, while ARS has also committed to covering the cost of the first inspection for each one of their collateral recovery specialists. Stamatis Ferarolis, President of RISC stated “We are excited to see ARS’s proactive approach. They understand that compliance and training will mitigate risk for their clients and their commitment shows how serious they are about partnering with their vendor network. Those vendors who are interested will also have access to RISC’s Agent Alliance Program, a full compliance management suite.”

About American Recovery Service & Patrick K Willis Company (http://www.pkwillis.com) ARS, a wholly owned subsidiary of Patrick K Willis Company Inc., provides nationwide asset repossession services, skip-tracing, impounded asset retrieval, license plate recognition (LPR) recovery, and online remarketing to the country’s largest banks, auto finance companies and credit unions. From the 1970s, when founder Patrick K. Willis built his company from the ground up, often performing repossessions himself, to the 1990s, when ARS originated the National Repossession business model, to more recent times when ARS pioneered the LPR Staging model and improved accessibility with ARS Mobile technology; ARS has been a constant leader the Repossession Industry. Through superior technology and business processes ARS’s success translates into $2B in recovered wholesale asset value for their clients each year. ARS repossesses a vehicle every 3 minutes, 24 hours a day, 7 days a week.

In keeping with our goal of providing professional certification and compliance training documents to the collateral recovery and lending industries, RISC has been working with the National Alliance of Buy Here, Pay Here Dealers (NABD) to provide these services to Buy Here, Pay Here (BHPH) automobile dealers.

BHPH automobile dealers are required to meet mandates of the Consumer Financial Protection Bureau (CFPB) just as lending institutions do. If BHPH dealers also perform their own in-house repossessions they must face recovery compliance mandates as well.

In working with NABD it has been our intention to address the CFPB compliance mandates and assist BHPH dealers in the areas of self-help repossession activity and protecting Non-Public Personal Information (NPPI). This information enables BHPH dealers to make more informed choices on whether they will handle their own repossessions in-house or assign those repossessions to certified, insured independent collateral recovery specialists.

Courts across the country are holding creditors liable for the acts of the collateral recovery specialists they utilize, so the decision of whether to train and use their in-house employees or independents is very important. Further, BHPH operators must train their employees to protect their consumers’ non-public personal information from third party disclosure. For all these reasons it is recommended that only certified, insured, independent collateral recovery specialists be used in recovery. As this is not always feasible, RISC offers two important training guides to mitigate risk: the BHPH National Certification Program and the BHPH Compliance and Operations Manual. These programs are designed to train and certify BHPH employees who service in-house repossessions of their employer and assist BHPH operators in compliance.

RISC plans to participate in the NABD National BHPH Conference in Las Vegas May 21-23. Operators are encouraged to discuss their particular needs with RISC during that conference or call us at (866) 996- RISC (7472) for further information.

RISC is very pleased to be the sole provider of vehicle key codes within the iRepo Assignment Management Solution to all Ally Financial vendors! We invite all Ally Financial and non-Ally vendors to use this quick, efficient service.

MBSi has designed the process to be easy and expedient. Key code requests take place post recovery, at the time and convenience of the recovery agent. RISC has seasoned locksmiths on staff that not only provide the key code quickly, but who can also troubleshoot and offer technical support. Key codes are available for all makes and models to include GM vehicles.

Our goal is to provide quick, seamless service through iRepo.

With the advent of the Consumer Financial Protection Bureau (CFPB) the operative words in today’s world of self-help repossession services are “compliance” and “risk management.” To meet the new compliance and risk management requirements RISC is excited to announce the new Collateral Recovery Specialist Compliance and Operations Manual.

RISC’s goal in creating this manual is to assist RISC Agent Alliance Members in making their business become “unassailable.” Our manual is uniquely designed to meet not only the compliance requirements of the CFPB and the lending community, but also to address risk management training that meets accepted Industry Standards. This new “tool” is designed to help ensure long term business success for RISC Agent Alliance Members.

The documents and forms contained within this manual have always been available to RISC Agent Alliance Members but our goal in creating this manual was to provide an easy to follow guide to meet today’s compliance standard. As these standards evolve RISC will assist its members and the Industry to continually meet new compliance standards.

Members have access to the documents and forms at any time just by logging into their personal dashboard.

View Dashboard

To view what other documents and forms are available please visit our website at: RISC Agent Alliance Membership.

The latest on the CFPB and their reporting requirements:
CFPB Outlines Plans to Share Complaint Data with State-Level Agencies

In keeping with its goal of serving all professionals within the collateral recovery industry, RISC has formally introduced the BHPH (Buy Here-Pay Here) Collateral Recovery Certification Program on October 22, 2012, at the National Alliance of Buy Here, Pay Here Dealers (NABD) East Coast Conference in Atlanta, Georgia.

This comprehensive certification program has been endorsed by the NABD and is designed for Buy Here-Pay Here auto dealers that service their own in-house repossessions. The program covers all aspects of the self-help repossession process, including applicable federal and state laws.

Courts are holding lenders directly liable for the acts of individuals they hire to service repossessions. It is vital that those who offer automobile financing and those who perform self-help repossession services have the knowledge and professional expertise to manage the inherent risks associated with the self-help repossession process.

As an advocate for those involved with the self-help repossession process, RISC wishes to see that only certified, insured recovery agents handle recoveries. That is paramount to ensure the safety of the employee and general public, and will only happen through proper training.

For BHPH automobile dealers and those dealers considering handling their own in-house repossessions, the BHPH Collateral Recovery Certification Program will be vital in ensuring they make the right decisions to mitigate the inherent risks.

NABD

After many requests, RISC is proud to announce that it has designed a program for businesses that offer services to the collateral recovery industry.

RISC originally designed its services around the needs of collateral recovery agents and agency owners. Since inception our purpose was to improve the Industry through each of our services and strive to continually do so.

However, with great success and word of mouth RISC has gained notoriety in different Industries that revolve around the collateral recovery Industry. And since much of what we’ve designed is meant to improve a business it bridges many industries.

Therefore with much excitement RISC has now opened up our membership to ‘associates’. The membership documents, training, compliance, and services will be offered to the business owner regardless of the type of Industry you’re in. As an associate member you will receive the following benefits:

• Access to the seminars and webinars as they are given across the country
• Business Documents to include: View Screenshot
  • Disaster Planning
  • CFPB complaint handling
  • Red Flags Rules
  • Best Practices Forms related to: Human Resources, Marketing, and Operations.
  • State Specific Case Law Commentary
  • News Articles
• 15% discount on all RISC services including the C.A.R.S. educational course, Continuing Education courses, Locksmith training, key codes and key blanks.
• Job placement and recruitment services.
• Risk management training and consulting
• Case law information for every state and expert opinions on legal questions and issues.
• Licensed insurance consultant on staff to assist members in understanding the complex nature of recovery insurance.
• Business consulting in “branding” your company and written procedures for marketing your business. We also provide business building articles designed to assist members in growing their business.>
• Membership is annual at a fixed rate. We do not prorate your membership if you become a member mid-year. You have one year from the start date of your membership to take advantage of our services at the discounted rates.

For more information please go to: https://www.riscus.com/riscAgentAlliance.aspx