There are things your repossessor thinks and knows, abilities and capabilities they have, that he or she simply isn’t going to tell their client. Here’s some of them:
1. “I really could come up with a lot more information that would help you recover your car.”
You would not believe the information available to us repossessors! Databrokers try and sell their systems to us repossessors at our conventions all the time. And most of us repossessors subscribe to them. We are using the exact state-of-the-art databases the skiptracers are using…the same ones.
We have access to this information, but we’re not using them on some of your accounts.
Why not?
The reason: this information is expensive. If the repossessor doesn’t get paid “skip fees” for locating a new address, or doesn’t get paid “close fees” on accounts that don’t result in repossession, they are not going to hit these databases on your accounts.
Its not unusual for a repo agency to run up a tab with, let’s say, Accurint, for hundreds, or thousands of dollars. When a client won’t pay close or skip fees, it disincentivizes the repossessor to invest money on working difficult accounts. He will simply “kill” the address and wait for the client to come up with better information.
It’s kind of an inside joke, really. Many of us (myself included) are licensed private investigators, and given a decent incentive, could come up with the exact same information that you’re paying Mr. Skiptracer $350.00 to get. But nobody is willing to pay us $50 or $75 to get the same information.
(Some clients think that repossession agencies will make this investment to boost their chances of getting a repossession out of the deal. Spoiler alert: they don’t. Or at least for long. Just check the recovery statistics of “contingent” and “non-contingent” agencies to see how this actually plays out. If you pay a close fee, more of your cars will be recovered).
2. “I’m Not Who You Think I Am”. These dumb repo shows really have done a number on the public perception of the repossession industry. We’re not toothless ruffians in wife-beater t-shirts.
The fact is if a client attended a convention of a national trade association like Time Finance Adjusters, or ARA, they would be surprised who they met. They would meet their peers.
Many (perhaps most, at this point) of those that run repossession agencies had their start in the collection departments of a bank or credit union, or one of the captives like FMC. Many had been law enforcement officers, or as stated above, successful private investigators. Many are involved in local charities, churches, or civic organizations.
This industry has now been maturing for decades, and the top tier of recovery agencies are well run businesses, lead by business professionals.
3. “Yes I Do Work for Forwarders”. Yep, some of the better repossession agencies actually do work assignments for some of the big forwarders.
The secret is that these accounts aren’t worked in the same fashion as “direct accounts”.
These forwarders all-but-say “hey, this is filler work. Run these addresses when you are in the area”. Often the repossessor later discovers he’s the second or third agent to work this account. And so, some repossessors will take this work on, but will only swing by these wrung-out accounts address when in the area. “Filler work”.
Gee whiz, I’m not a financial genius, but if I were a banker and I had one of my $20,000 cars sitting out there somewhere, I wouldn’t want some repossessor viewing my account as “filler work”. I’d want someone to devote enough time and effort to actually safely recover my car.
Ask most repossessors that work for the big forwarders, and you’ll learn that they don’t give forwarders their best efforts, due to low fees paid, and due to low quality of the information provided.
4.)…And When I Do Work for Forwarders, I Get A Lower Percentage of Their Cars. So much information gets lost in the process when routing a repo account through a big forwarder! There’s stuff that the collector knows about the debtor (“he bowls”….or, “she’s separated from her husband”…or, “we think the kid is actually driving the car”) that we never hear when the account is part of a portfolio of accounts dumped in the forwarders “in box”.
Don’t take my word for it. Ask any repossessor who works for a large forwarder about the loss or corruption of valuable information as it passes through third party hands. Cars are lost in the process.
5.) I Really Do Care About Your Customer. Repossessors are people, too. This recession has made debtors out of the best of people. Most professional repossessors I know don’t have to warned to treat your customer with dignity and respect….its part of our nature. The people we are dealing with have already been through the wringer by their credit card companies, mortgage companies, and other bill collectors.
There is a saying attributed to Plato, the Greek philosopher: “Be kind, for everyone you meet is fighting a hard battle“.
Its a good thing to keep in mind in this volatile, sometimes hostile business .