CITRUS HEIGHTS, Calif. -

Once the decision to repossess a vehicle is made, credit unions can be challenged in looking for processes and agents that can bring in the highest recovery rates.

This is because we know instinctively that higher recovery rates can mean that the collateral can be sold and the return posted to the deficiency balance more quickly.

With the current industry recovery rates hovering around the 50-percent mark, how can you make decisions that will bring the unit back faster? 

Here is some information that can help set goals that will make a tangible difference:

—Measurement: for a true measure of success, look at two areas: re-establishing contact with your client for payment solutions and timely recovery of the asset.

—Communication between staff and recovery agents is a key to success. Be frequent and clear and include the best information possible.

—Follow-through: the quality and timeliness of agent and/or client follow-through to requests. Often, digging deeper into the collection file will reveal additional points of contact that can be valuable to the recovery agent.

—Technology: The recovery industry is becoming more sophisticated in this area with mobile communication and advances in license plate recognition systems.

Let’s go back to the 50-percent industry average mentioned previously. Setting some additional goals can drive recovery ratio numbers up and bring bottom line success to your department:

—Do your homework: Pick agents that have a proven track record in both areas listed previously.

—Ask for a "report card" of recent recoveries. You want to see numbers above the 50-percent mark.

—Be prepared to communicate as soon as requests for information are received

—Keep up with technology development. You may even be able to find those elusive charge-off units.

Using all of the resources and techniques described can shave days off of the recovery time and help re-connect you with your member, but may seem daunting in execution. If that is the case, consider outsourcing the process to a company that can show results in each of the key areas I mentioned.

Dorothy Drake is a business development consultant for Repo Remarketing, which brings credit unions together under one umbrella for national repossession and remarketing services. If you’re interested in specific recovery or remarketing information to help your credit union, visit www.reporemarketing.com or call (916) 725-2708.