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ATLANTA — The importance of the repossession industry to our economy is something that is often overlooked or misunderstood. Lenders of all types and sizes rely on hundreds of repossession agencies throughout the country as a crucial form of recourse when loans default.

As repossessions soared during the last two years, new processes and technologies gave lenders and agencies more opportunity to consider the nuances of their relationships. Facilitating these relationships, AutoIMS believes that success often hinges on thorough expectation setting between the two parties.

Yet so often, these expectations go unspoken, or only arise after problems occur. To that end, we asked a few of our lenders what they value most from their repossession partners.

Why the Good Ones Are Good

Any repossession agency knows lender requirements vary in complexity and detail. Still, there are a number of high level attributes that lenders consistently refer to when they speak of their best agencies. Patricia Holmes, vendor relations manager for Ally Financial, pointed to several traits that you would expect from any business partner.

"Complete honesty about the transaction (assignment) — and even about unforeseen excess charges that may occur," Holmes said.

"Also, taking ownership of and resolving issues that may arise in the repo process," she added.

Lenders consistently mention specific attributes of their best agencies, including their willingness to:

—Provide timely updates through a repo management system.

—Quickly acknowledge receipt of all lender communications, especially key updates like a location change, or if the unit is placed on hold or canceled/redeemed.

—Report repossessions immediately in order to trigger compliance and the next steps in remarketing.

—Treat the vehicle as if it were their property — damages during the repo process can cause major issues for lenders.

—Protect your company by taking ample pictures and providing a thorough condition report.

—Remove all trash from the unit; document and safely store personal property.

How Not to Fall Short

Lenders have a number of traits they value in their best agencies, but they are also quick to point out how the less-preferred agencies fall short. Some of the most consistently cited negative characteristics include:

—Generic updates, which are often meaningless to the lender, thus wasting time for both parties (For example, "drove by residence, no sign of vehicle.")

—No keys recovered or provided, or no key status provided.

—Overcharges or incorrect charges on an invoice.

—Frequent customer complaints, or reports of mistreatment of debtors.

As with the positive attributes, many of the biggest lender pet peeves may often go unspoken, leaving agencies wondering why they haven't received another assignment from a particular client.

For agencies who want to make it to the "preferred vendor list, it never hurts to remember "The Golden Rule," and even to ask clients about what they value beyond the standard requisites to do business.

Holmes sums it up nicely.

"Actions of every employee reflect upon the agency as a whole," she emphasized. "Be honest, thorough, polite and helpful."

The Two-Way Road to Recovery

For all the benefits of having repossession in a lender's toolkit, administrating repossession is often an incredibly labor- and process-intensive job. For larger lenders especially, the burden of managing thousands of debtor accounts and hundreds of repossession agencies, while complying with state and federal laws for which the lender is ultimately accountable, can be incredibly expensive and inefficient.

In an industry where success is tied directly to the speed with which a vehicle can be legally recovered and remarketed, lenders are constantly searching for repossession partners that can meet their needs and adhere to rigid expectations.

Lenders and repossession agencies alike should make note of as many of each others' expectations as possible — even the softer ones — in order to ensure a successful, long-term relationship.

Joe Miller is director of customer service for Auto Auction Services Corp.