RALEIGH, N.C. -

Along with forging two other partnerships with technology providers for compliance and more, Consolidated Asset Recovery Systems officially began its Right to Cure Auction through relationships with Copart and Asset Nation.

As CARS discussed previously in leading up to this new offering, the company indicated the Right to Cure Auction is designed to provide an “upstream marketing” bidding process that aims to expose repossessed vehicles to potential buyers as they are working their way through the holding process, allowing lenders to use that time as efficiently as possible.

CARS insisted the two new partnerships are geared to leverage potential on both the wholesale and retail fronts.

“We created this new offering to cut costs, streamline the online bidding process and get money in the hands of lenders faster, as well as getting high-demand quick-turnaround assets in the hands of buyers faster,” explained Steve Norwood, chief executive officer of CARS.

“There’s always been pressure from all sides of the equation to get the repossessed vehicle to auction and get it sold as quickly as possible, and this Right to Cure Auction allows us the opportunity to do that,” Norwood continued.

During a vehicle’s holding period, CARS explained pictures are taken and a condition report is compiled through Copart. Afterward, buyers can review listings and make their highest sealed bid during an online auction that can last as long as seven days.

If the lender approves, the asset is awarded to the highest bidder, and it can be picked up at the nearest Copart location.

If, however, an asset doesn’t sell, CARS pointed out the lender incurs no costs. Although the vehicles cannot be sold until after the clear-to-sell date, lenders can start taking bids early on and speed up the resale process.

For lenders who prefer to interact with the retail-buyer market to recover money lost on repossessed assets, CARS has also broadened its partnership with Asset Nation, a company that traditionally has remarketed construction, farm and industrial equipment.

The company explained the process works similarly to CARS’ deal with Copart on the wholesale side, except that the repossessed unit stays at the agent location and any storage fees that may be incurred while being there are worked into the deal.

Unlike the wholesale auction, CARS noted that lenders can opt to extend the bidding process for a longer time. This option is a preference of many credit unions and smaller finance companies that believe they can get a higher value for an asset by going directly to the retail buyer.

“These two partnerships with Copart and Asset Nation have really allowed us to give lenders an alternative to the traditional auction process that wasn’t really available before,” Norwood declared.

“At CARS, we are always trying to think of new ways to respond to industry changes and lender requests, and we really see ourselves as a ‘one-stop shop’ for the entire repossession and remarketing process,” he went on to say.

CARS, Future Computer Systems Unveil EZ-Letter

In other company news, CARS is partnering with Future Computer Systems, a software company providing online mail fulfillment services, to launch EZ-Letter.

CARS thinks EZ-Letter will be the industry’s first closed-loop solution for the electronic creation and distribution of statutory default forms such as “Notice of Sale” and “Notice to Repossess.”

The system, managed from within CARS’ proprietary Internet-based Electronic Asset Management System (I-BEAM) Web portal, is designed to provide lenders with an electronic workflow meant to improve their ability to remain in compliance with state laws governing statutory default form content and proof of delivery procedures.

“Remaining in compliance with differing state laws and meeting the time frame required for debtor notification and proof of delivery are two of the greatest challenges for lenders,” Norwood emphasized.

“This technology and partnership with FCSI will allow us to improve accuracy while reducing the time for delivery, thus allowing us to manage the overall repossession process better,” he added.

Norwood went on to highlight EZ-Letter is designed to work by allowing lenders to access certified templates from within the I-BEAM repossession management portal or upload their own. These templates then can use information contained within the data warehouse to populate key fields, removing the opportunity for human error.

Once the state-specific template is populated, the letter can be electronically submitted to FCSI where it is printed and entered into the U.S. Postal Service.

From within the U.S. Postal system, FCSI can electronically track and capture logistical data along with proof of delivery documents, including the signature and green cards, which are then transmitted to the I-BEAM portal, where a historical record is retained of the transaction.

CARS contends the new solution is expected to greatly reduce a lender’s exposure in several ways.

First, templates are compared regularly to state laws to verify that content meets compliance.

Secondly, documents are processed much faster, reducing the overall time line for letter generation and time to enter the mail system.

Additionally, this system is expected to improve accuracy and reduce probability for human error since this allows for much of the process to be electronically automated.

“In developing this system, our goal was to address the areas where we could provide a benefit to those who regularly send certified mail,” stated William Carter, CEO of FCSI.

“Our system has created an easy-to-manage method for meeting all certified mail needs. With the time, effort and money our system saves, it represents a great return on investment,” Carter continued.

CARS Forges International Partnership with iCompli

In another development, CARS also announced its first international partnership with iCompli, a U.K.-based compliance technology company.

Officials indicated iCompli will leverage CARS’ I-BEAM 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,” Norwood pointed out.

“Dealing with international repossessions can often prove cumbersome, and this partnership with iCompli will help us set the standard for recovery worldwide,” he continued.

Through a common single interface, CARS said lenders will have complete transparency into the repossession process regardless of the asset’s location. The company believes international repossessions will be tracked and analyzed as easily as domestic assignments are in the United States.

“For the asset owner who is being driven hard to manage ‘cost of risk’ and ‘lean’ their organization, this is a great opportunity to influence asset recovery rates and improve standards of information and service delivery whilst integrating best practice on an international scale,” noted Duncan Smith, CEO of iCompli. “We think, and you win.”