1. Buy here – pay here Collection best practices
Presented by
david Brotherton
Moderator & Consultant
NIADA Dealer 20 Groups

2. David Brotherton is an Executive Twenty Group Moderator and Consultant with NIADA. He moderates several Dealer Twenty Groups whose members are involved in the Buy Here-Pay Here industry and provides on-site dealership reviews, training and consulting services.
A regular contributor to industry publications, David also regularly addresses national and regional conferences and conventions supporting the industry.
David brings twenty years of experience in sub-prime consumer finance, mortgage sales and operations, collections and Buy Here Pay Here operations to NIADA. He has 12 years experience in the J.D. Byrider system as a consultant and manager where his teams have produced consistently strong sales volume and portfolio growth.

3. The Best Operators Today Are Still Thriving
Today’s environment
Highly Competitive
Consumers Have Multiple Financing Options
Easier To Get New Car Than It Is To Fix Old One
Our Best Customer Relationships At Risk
Increased Regulatory Scrutiny
Continuing To Evolve
Consumer Focus
The Best Operators Today Are Still Thriving

4. Best practices
Underwriting And Verification Are Critical To Collection Success
Verify And Document Ability To Repay
Residence Verification
Employment Verification
NOT A Sales Function
Minimum Income & Maximum PTI Qualifiers
Be Wary Of Attempted Fraud

5. Best practices “A Contract Well Closed…..”
Full Disclosure – No Shortcuts
Dedicated Closing Personnel
Detail Both Party’s Rights & Obligations
Consequences Of Default
GPS/Starter Interrupt
Importance Of On-Time Payments
Electronic Communication
Vehicle Servicing
Welcome Call

6. Best practices
Sell The Customer On Benefits Of Recurring Electronic Payments
Best Performers Consistently Have High Recurring Payment Penetration Rates
Can NOT Be Required
Build Into Collection Process
Helps To Refine And Define Collection Process
Better Resource Allocation
PCI Compliance Rules

7. Best practices Build A Relationship With Your Customer Welcome Call
Best Collectors Listen
Don’t Make Them Afraid To Talk To You
Don’t Be Just Another Bill
Account Notes

8. Best practices
Use Compliant Communication Methods Convenient To The Customer
Electronic Communications Must Be Pre-Authorized
SMS
Third-Party Disclosure Issues
Best Time To Call
Do Not Harass

9. Best practices Deal With Collection Issues Early In The Process
Don’t Let Problems Grow – Deal With Issue Now
Determine The Real Issue
Problem Solving
Assume Every Customer Will Need Your Help At Some Point
Treat Your Customer How You Would Like To Be Treated

10. Best practices References FDCPA Restricts Reference Contacts
Limited To Locating Customer
Third-Party Disclosure
Modern GPS Technology Makes Locating Vehicle Much Easier Today
Don’t Rely On References To Save You

11. Best practices Staffing
If You Are Going To Overstaff, Collections Is Where You Do It
Delinquent Accounts Per Collector (Monday Opening)
Expect Every Unpromised Delinquent Account To Be Worked Every Day
Need Enough Collectors To Do This

12. Best practices Management & Training Effective Collection Leadership
Lead By Example
Review Account Work
Hold Process To Higher Standard
Never Neglect An Opportunity To Train
Take Advantage Of Outside Training Opportunities

13. The Goal Is To Grow/Maintain The Portfolio – Not The Repo Lot!
Best Practices
Incentive Targets - Balanced Approach To Collection Management
Contractual Delinquency
Recency
Repossession Rate
Cash Collections
The Goal Is To Grow/Maintain The Portfolio – Not The Repo Lot!

14. Best practices Payment Assistance Devices
Modern Payment Assistance Technology Is A Tremendous Collections Tool
Will Drive Contact
Helps Identify Problems Early In Cycle
Part Of Good Collection Process – Not A Substitute For It

15. Field calls If you Are Still Doing Field Calls – STOP
Far Too Much Downside To Justify Time & Expense
Third Party Disclosure
Harassment
Regulator Focus Issue

16. Best practices Continue To Invest In Your Portfolio
Goal Is To Eliminate Mechanical Repossessions
Your Customers Will Need Help With Repairs
Robust Service Agreements
Policy/Goodwill
You Will Probably Fix It Anyway
Keep Customer Engaged And Participating In Repair Process
Limit Repair Receivables To What You Can Actually Collect
As-Is Isn’t

17. Training Opportunities
David Brotherton
Moderator/Consultant
NIADA Dealer 20 Groups
BHPH Boot Camps
August 9-11, 2016
Dallas, TX