With wrongful repossessions costing finance companies and forwarders up to an estimated $1 million annually, MBSi has introduced a solution which significantly reduces lien lost risk and associated costs.

MBSi highlighted on Tuesday that Lien Verification is a new product solution embedded within its RecoveryConnect platform, which can automate the process of checking vehicles for lienholder changes to ensure assets are eligible for repossession.

MBSi acknowledged that financial institutions face pressure to ensure regulatory compliance and avoid wrongful repossessions and associated penalties. The company pointed out that traditional manual verification processes are resource-intensive and prone to errors.

MBSi’s integrated Lien Verification solution can fully automate the process, offering efficiency, cost savings and improved compliance.

The company explained Lien Verification can proactively and seamlessly check for lienholder changes on a selected vehicle or a user’s entire portfolio within RecoveryConnect. The solution taps into data providers to conduct nationwide searches compared to state-by-state searches for a more accurate and reliable verification.

When Lien Verification detects a lien has changed hands, the case automatically goes on hold, stopping repossession activity until reviewed by the client, preventing wrongful repossessions and saving lenders and forwarders time and money.

This information is presented to service providers on the case, including the repossession agency, letting them know the last lien check date to give them confidence assets are available for repossession.

With stakeholders demanding transparency and accuracy in today’s competitive market, MBSi senior vice president of product and marketing Heather Ford said the company is focused on developing advanced products and tools to help our clients build trust, maintain compliance and reduce costs.

Ford added that MBSi continually invests heavily in research and development and is product-driven and customer-focused, offering customers the most stable, scalable and compliant solutions on the market.

“Lien Verification is an exciting advancement in what we offer our lender and forwarder clients,” said Ford, who is among this year’s Women in Collections and Recoveries honorees presented by American Recovery Service. “We heard directly from our clients that costs and legal risks of wrongful repossessions are a major pain point. This tool goes a long way in helping solve those issues by offering users an automated way to verify lienholders.

“And because Lien Verification is embedded within RecoveryConnect, there’s not an additional platform to learn and manage, making the process completely seamless,” Ford went on to say.