LAKE FOREST, Calif. — Despite production delays for some automakers, new-car sales are rising. And along with it, the number of auto loans originated is growing as more financing becomes available, according to National Creditors Connection.

At the same time, credit underwriting guidelines for many lenders have become less restrictive, as competition grows fiercer to increase market share, the company noted.

"This is certainly great news for the economy and new-car buyers, but it can cause trouble for lenders later on," said Joe Weber, director of sales at NCCI. "We've seen this happen before and we know the outcome — higher delinquencies.

"Gone are the days of a cavalier approach to servicing — you must have a robust, pragmatic servicing strategy at the outset," suggested Weber. "Economic setbacks and government intervention have created an environment where it is crucial to stay on top, and ‘in touch' with borrowers. Door-knocks are a key element of that strategy.

"The information we gather and the empathetic message we deliver are the one-two punch of a successful borrower outreach solution," Weber added. "That can help limit delinquencies and get nonperforming accounts back to performing status quickly."

For more information on the company's services, visit www.nationalcreditors.com.