Auto Lenders at Risk for Unpaid Customer Refunds
June 02, 2015
DALLAS — Auto lenders need to quickly track down and distribute customer refunds for cancelled ancillary products or they run the risk of penalties from regulators, Rich Apicella, executive vice president of F&I Express, warned last week during a panel presentation at the National Automotive Finance Association (NAF) Non-Prime Auto Financing Conference.
Cancelled ancillary products, whether due to an early loan payoff or loan default, often leave consumers with a portion of an unused contract. Frequently, 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, some dealers simply don’t make the effort. It results in millions of dollars in unpaid refunds each year.
F&I Express introduced “Express Recoveries,” an online system that helps lenders expedite recovery of ancillary product cancellation refunds. In addition to creating goodwill with consumers, the system also helps lenders keeps government regulators at bay.
“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. It’s a win for everyone involved.”
For more information, visit www.fandiexpress.com/lenders.