PLANO, Texas -

F&I Express executive vice president Rich Apicella cautioned auto finance companies about the need to track down and distribute customer refunds for cancelled ancillary products. Otherwise, Apicella warned that finance companies run the risk of penalties from regulators.

As part of a panel presentation at the recent National Automotive Finance Association Non-Prime Auto Financing Conference Apicella noted cancelled ancillary products — whether due to an early loan payoff or loan default — often leave consumers with a portion of an unused contract.

Frequently, Apicella indicated consumers do not realize they are entitled to receive a refund for any portion of an ancillary product that goes unused. Because the process for recovering refunds for these customers involves time-consuming paperwork and financial chargebacks, he acknowledged that some dealers simply don’t make the effort.

“It results in millions of dollars in unpaid refunds each year,” Apicella said.

To combat the potential pitfall, F&I Express has introduced “Express Recoveries,” an online system that can helps finance companies expedite recovery of ancillary product cancellation refunds. 

In addition to creating goodwill with consumers, the system also can help finance comapnies avoid drawing the ire of government regulators.

“Regulators are quick to provide protection for consumers,” Apicella said. “Lenders who proactively engage in operational strategies that quickly put money back into a consumer’s pocket are much more likely to be seen in a favorable light by regulators.

“With Express Recoveries, lenders can quickly and easily recover refunds for eligible consumers,” he continued. “It’s a win for everyone involved.”

More information about ExpressRecoveries can be found at www.fandiexpress.com/lenders.