Case Study the road to success:
Vervent + Auto Servicing
When a large attriting portfolio of over the road and small commercial vehicles was in distress, Vervent delivered on its promise of speed and service to turn the portfolio around.
This portfolio was under a Backup Servicing contract where continued servicer defaults occurred which resulted in failed certifications.This non-performance and non-compliance ultimately caused the portfolio to trigger and Vervent to step in as the successor servicer.
As the established Backup Servicing partner, Vervent was ready to assume successor servicing in case of a trigger event. When this portfolio fell into distress, the data, loan tape, process transfers, and verifications that happen as part of the ongoing backup process allowed for quick onboarding. That backup process and preparation along with having multiple full-service operations centers with robust agent recruitment, training, servicing systems, and workflow processes ready-to-go enabled a 30-day servicing transition.
Yes, in fact Vervent was able to overcome some unexpected issues and still transition in just 30 days. Call volume was 700% higher than expected/reported, and Vervent was able to add enough additional agents in days to appropriately manage the inbound call flow. However, the best outcome was collecting over $7 million in sales inthe first six months to keep the portfolio in good standing.
Vervent has more than 50 years of collective experience leading top-notch auto servicing programs at HSBC, Household, ACC, American Honda, Toyota Financial Services, and Vervent. We invest in our leaders, our staff, and our robust operational processes to deliver auto loan and lease servicing that performs above industry standards.
Our team – from agents to managers – are experts at efficent and effective onboarding, collections, and servicing auto portfolios, with more than 650K accounts under management. And, with six operations centers well-equipped with technology, hardware, tested procedures, and highly trained agents at-the-ready, we can accommodate any volume, and scale up or down as needed.
In 30 days, Vervent successfully transitioned from Backup Servicer to Successor, assuming servicing, reassigning all units to their national network of repo providers, and actively liquidated a large industry auto backup trigger event backed by one of the largest capital providers.
When call volume was 7x what was reported, we didn’t skip a beat. In fact, service levels increased from 77% to 95% monthly because of Vervent’s expertise in anticipating, reacting, and adapting to the unexpected.
While no one wants a portfolio to trigger, this was considered a success because of how quickly operational processes deployed which allowed for a rapid assumption of servicing that ultimately mitigated delinquencies. By combining experience with vigorous preparation, we were able to turn a distressed portfolio around enough to recover millions.