When you’re in the business of auto lending, collateral recovery can be an expensive and risky endeavor. While no lender wants to repossess their borrowers’ vehicles, sometimes it’s necessary in order to recoup as much of your asset as possible. That being said, when you work with third-party recovery partners, it’s critical that you ensure they have a documented code of conduct for their agents. Because these individuals are dealing directly with your borrowers and are a reflection of your financial institution, proper conduct practices are important to preserve your brand and reputation. Every organization will have a policy that is unique to their culture and company rules, but here are 7 examples of some of the prohibited behavior that you should look for in your collateral recovery partners’ code of conduct.
1. False, deceptive, or misleading representative practices
Your partner’s code of conduct should prohibit their agents using any sort of false, deceptive, or misleading representation practices, either verbal or written, during the recovery process, including stating that they are employed by a consumer reporting agency.
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