Repossession Guide

1|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
Table of Contents

Repossession Process ……………………………………………………………………………………………………………. 3

Preventing a Repo Unwind…………………………………………………………………………………………………….. 5

Afterhours Procedure…………………………………………………………………………………………………………….. 7

Reinstatement Requirements…………………………………………………………………………………………………. 8

Details of Reinstatement………………………………………………………………………………………………………… 12

Reinstatement Process…………………………………………………………………………………………………………… 13

Working in the Repo App……………………………………………………………………………………………………….. 16

Important Account Conditions……………………………………………………………………………………………….. 22

2|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 REPOSSESSION PROCESS

What is a Repossession?
 A repossession occurs when a borrower either falls behind on their car payments, the customer
voluntarily surrenders the vehicle, or during an impound repossession event and the lender
reclaims the collateral. (Please refer to the Voluntary Surrender and Impound Repossession
policies for further information on those topics.)

What are the consequences?

 If the lender and the borrower(s) are unable to work out an alternative, then the repossession is
reported to the credit reporting agencies and may affect the borrower(s) credit score.

What are the alternatives?

 Depending on state laws and certain conditions of the account the customer may be given the
opportunity to reinstate the contractual agreement or redeem the vehicle.

How a Repo Assignment is opened:

1. At 45+DPD a repo order is requested/submitted by a Repo Admin as a draft based on certain
criteria.
a. WCC: Review’s FPD at 17 DPD and 31+ on regular accounts.
2. Then the draft is assigned to an outside Repo Company (Repo Vendor) and the License Plate
Recognition system (LPR).
3. The account will be conditioned with Repo Open Assignment.

What happens if the customer does not make the necessary payment or a payment arrangement?
1. The Repo Vendor may search and recover the vehicle.
2. Once the vehicle has been recovered, the account will be conditioned with Repossession.

3|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 3. If the customer does not make the necessary arrangements to get the vehicle back, then the
following will occur.
a. Processed NOI: The Notice of Intent to sell is generated.
b. NOI Sent: The Notice of Intent to sell is sent to the customer.
c. Title Requested: Title is requested so that the vehicle may be sent to auction for sale.
d. Transport Request: Request to transport the vehicle to the auction lot.
e. Transport Authorized: The transportation of the vehicle has been authorized.
f. Transport Confirmed: The vehicle has been confirmed as located at the auction lot.
g. Set for Sale: The vehicle is ready to be sold.
h. Repo Sold: The vehicle has been sold at auction.
i. Funds Received: Westlake has received the money from the sale of the vehicle.
j. Auction Proceeds Posted: The money is posted to the account and subtracted from the
loan balance.
k. Statement of Deficiency Notification Sent: The customer is notified that the vehicle has
been sold and what balance remains on the account which must be settled by the
customer and is still responsible to pay in full.

4|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 PREVENTING A REPO UNWIND
What is a Repo Unwind?
 A Repo Unwind occurs when, for example, a lender mistakenly recovers the collateral
where the customer has either not defaulted on the loan or has made arrangements or
a payment to cure the account during delinquency. The lender would have to “unwind”
or undo the repossession event.

In order to prevent a Repo Unwind it is imperative to properly Hold or Close any repo orders in
RDN (Repo App) and LPR.

If the customer sets an acceptable arrangement based on the PTP guidelines, then a “Repo
Hold” account condition must be placed through RDN (Repo App) and LPR.
 Repo Hold: This account condition will be used/displayed when there is a Repo Open
Assignment however; repossession efforts have been placed on hold and the vehicle has
NOT been recovered by the repo vendor.
• Collector must confirm customer has possession of vehicle prior to taking the
payment and must document confirmation
• In order to hold repo, the payment must fall within PTP guidelines
• It is very important to properly hold the order in RDN (Repo App) and LPR to
prevent a Repo Unwind

Repo App

5|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
  Close: In the event the customer makes the necessary payment to avoid repossession,
then the repo order must be closed in LPR and RDN (Repo App) to communicate with
the Repo Vendor to stop all repo efforts.
• It is very important to properly close the order in RDN (Repo App) and LPR to
prevent a Repo Unwind.

Repo App

Once closed, the “Repo Open Assignment” Condition will be removed from the account.

Once the account has been conditioned to Hold or Close, email the Repo Admin Team to Hold or Close
the order in LPR. Request to Close the “Repo Open Assignment” order ONLY when the necessary
payment has been verified. Email repoadmin@westlakefinancial.com with the following:

 Account Number
 Customer’s name
 Full VIN
 Payment information
 Request to Hold or Close
 NOTE: The Repo Admin is only responsible for closing the request in LPR. Collector
must close the order in RDN (Repo App).

NOTE: Please advise customers that all Hold and Close requests are ONLY a request. It is
NOT a guarantee that the hold or close will be successful.

6|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 After hours Procedure
Repossession Vendor offices normally close at 5 p.m. their local time however, the repo agent may still
be out in the field attempting to recover the vehicle. When a customer makes a payment or an
arrangement after hours, follow the After Hours Procedure to prevent a Repo Unwind.

After Hours Procedure

1. Confirm that the customer is in possession of the vehicle and if so; collect the required payment
or set the arrangement.
2. Proceed to condition the account appropriately and hold/close the order in RDN and LPR.
3. Attempt to make contact at the vendor’s regular contact phone number. This may be obtained
from the Repossession Agent Contact Sheet column titled “Phone Number”.
• If contact is made to the Repossession Vendor’s office, advise that the necessary
payment/arrangement has been received and to hold/close the repo order.
4. If contact is NOT made, proceed to calling the “After Hours Number” from the Repossession
Agent Contact Sheet.
• Contact will be made to the responsible party which will reach out to the Repossession
Vendor’s field agent to cancel the repossession efforts.
5. Notate the full after-hours efforts in the Collections App.
• Include the after-hours phone number contacted, the name of the agent spoken to and
any important information the Repo Vendor may have advised.

NOTE: Please advise customers that all Hold and Close requests are ONLY a request. It is
NOT a guarantee that the hold or close will be successful.
7|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 REINSTATEMENT REQUIRMENTS
What is a Reinstatement?
 When a customer wishes to continue their relationship with the company and will continue to
make their monthly payments.

What is a Redemption?
 When a customer must pay the full balance on the loan including all fees associated to the loan
in order to receive the vehicle back.

A customer who chooses to exercise his or her right to reinstate the contract must make the payment
required to reinstate as shown on the Notice of Intent, via certified funds within 15 days (or longer as
allowed by the laws of the applicable state.)
When will the customer NOT be allowed to reinstate the contract, and MUST redeem unless approved
by a supervisor or above?
 3+ repossessions (Coll App/RDN Notes)
 Act of violence (Found in RDN Notes)
 Repo efforts were hindered (Found in RDN Notes)

What must be done to process a Reinstatement?

First, it is important to explain the following clearly to the customer:

1. The customer must pay the following: If applicable, refer to the NOI letter which includes the
past due payments and repossession costs.
 Past due payments
 Late charges
 NSF fees
 Repo Fees (Others Due) - If NOI has not yet been issued; then obtain from the following:
• If vehicle is located at repo lot; call the repossession company to obtain a
breakdown of total fees owed.

8|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
 • If vehicle is located at auction; email the Remarketing Dept. which will provide
auction fees owed. Email: remarketing@westlakefinancial.com
• If unable to pay all fees, send an email to a supervisor requesting the repo fees
to be paid at the time of maturity along with RFD.
 Approved by a supervisor based on certain account criteria
 Assistance may only be offered on first repo and up to a max of $500.00
 Explain to the customer the outstanding fees are moved to the
end of the loan and must be satisfied at maturity
 Explain the account may have a balloon payment if additional
payments are not made to cover fees prior to maturity
 Explain that interest will not be accrued on the remaining fees
after maturity
 Explain that the release of the title will be delayed at maturity if
all outstanding fees are not satisfied on the account

Repo Fees Breakdown:

 Repossession Fee (towing)
 Daily Vehicle Storage Fee
 Administration Fee
 Personal Property Fee
• Note: If unable/refuse to pay PP fee, that fee will be billed to the Company. At
no time, shall the release of Personal Property be delayed due to the fee.

Breakdown Notes:
 When handling reinstatements, there must be a detailed breakdown notated with all
payments and fees due. If not, a supervisor will cancel the promise
 A detailed breakdown needs to be added to the account notes for EVERY reinstatement
Example:

Locating the Repossession Company Phone Number:

 The repo company phone number will be located in the comments
 In order to find the name of the repo company navigate to the repo tab in the
Collections App. Under “Category Filter” select “(REPO) REPOSSESSION.” The Repo
Company name will display under REPO AGENT.

9|Page
v.7.27.2018
Created by Corporate Training & Development for internal use only
  Then, navigate to Comments and enter the repo company name in the filter function

2. The customer must furnish Stipulations (STIPS):

 On a first repossession, STIPS will NOT be requested or required, for reinstatement; once
the quoted payment has been made, the vehicle will be released
 On any subsequent repossession, STIPS will be required for reinstatement; the vehicle will
not be released unless the quoted payment has been made and the STIPS have been
received
 Proof of income: Paystub
• Alternative, may provide letterhead from company/owner or bank statement
 Proof of residence: The most recent utility bill dated within the last 30 days with the
customer’s name and current address
• Alternative, may provide bank statement or any document with their
name/address that is mailed to them
 A valid U.S. driver’s license: If the customer does not have a valid driver license, then
the driver’s license of another person (3rd Party Driver License/3rd Party Vehicle Release)
picking up the vehicle may be used
• A letter of authorization is required to be faxed or emailed
• Copy of the 3rd Party’s Driver License is required to be faxed or emailed
• 3rd party release must be documented on the account with the 3rd party’s
name, stating they will pick up the vehicle which will be uploaded to FileNet
by the Servicing Admin once received
 Three (3) new references: Admin will verify and add the verified references to FileNet
and the account.
• 1 co-worker or relative if unemployed
• 1 relative not living with the customer
• 1 of any other reference
 STIPS must be faxed to (323)954-5320 or emailed to
reinstatement_admins@westlakefinancial.com
 Every correspondence page must include the customers full name and account
number

NOTE: STIPS may be waived at supervisor’s discretion.

DO NOT release the address of an Auction or Repo Lot.
10 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
Important things to take into consideration:
Notice of Intent (NOI) Reinstatements:
 In the following states, Westlake charges ONLY what the NOI quotes. NOTHING MORE
• California (CA), Maryland (MD), Ohio (OH), Pennsylvania (PA), Connecticut (CT),
and Nevada (NV)
 If no NOI is stamped on the account, treat as a regular reinstatement

Method of payment for Reinstatements:

 Advise the customer that the payment is to be made via Certified Funds (MG or PNM)
• MoneyGram and PayNearMe post the same day if made before 8pm (PST)

Impound Repossession:
 If the account is conditioned Impound Repossession, then the collector must verify if
there are any police holds that may prevent the vehicle being released. The collector
must communicate to the customer any holds that would prevent the vehicle from
being released within the expected 24-48 business hour time frame.

11 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 DETAILS OF REINSTATMENT

There is important information that needs to be provided to the customer when discussing the
reinstatement of a vehicle.

Reinstatement Waiting Period:

 Once the payment and STIPS, if applicable, have been received and verified, release can
take 1-3 business days. The customer is responsible for storage fees until the vehicle is
recovered.
Vehicle Transport:
 If the reinstatement cost is not posted within 48 hours of the repo date; the vehicle may
be transported to auction. The nearest auction may be located outside of the
customer’s local area and will be the customer’s responsibility to retrieve the vehicle.
Advise the customer of this and document the account.
Payment Adjustment:
 Once the payment posts, the full amount may be applied towards the monthly
payments. The account might show current for a couple of months ahead as a result.
 Make sure to document and advise the customer when their next payment is due and
the amount so there is no confusion.
Release Completion:
 Once Westlake has authorized release of the vehicle, the customer still needs to call the
repossession company to schedule an appointment for pick up. Do not release
repo/auction address
 In the state of CA, the customer must obtain a release form at their local law
enforcement agency, there is a $15-dollar fee, and must present the form at time of pick
up to the Repo Company.
 If a customer calls in after they paid and the account is not stamped:
• Confirm the payment by checking the MG system. For PNM contact a supervisor
to check on the payment.
• If the funds have been confirmed; e-mail
reinstatement_admins@westlakefinancial.com, CC Servicing supervisor and
request for the release to be submitted. This will avoid any delays.
New York/Connecticut:
 The customer must pick up license plate from local DMV prior to picking up the vehicle
from the repo vendor. The Repo Vendor turns the plates over to the DMV in NY and CT.

12 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 REINSTATEMENT PROCESS

Once the Repo Vendor recovers the vehicle the status on the account will change to REPOSSESSION. The
following holds should be used when processing a reinstatement, if eligible, or a redemption.

 Hold at Agent: This account condition will be used/displayed when the vehicle is being
held at the repo vendors lot and we want to prevent the vehicle from transporting to
the auction lot. This is determined if the Account Condition does NOT show “Transport
Confirmed.”
• If the account has the condition “Pending Transport Authorization”, it is
extremely important to advise the customer that if an arrangement is not
made immediately it may possibly go to the auction lot and the pickup will
need to be made from there.

 Hold Sale: This account condition will be used/displayed when the vehicle is at the
auction lot and we want to prevent the vehicle from being sold. This is determined if the
Account Condition shows “Transport Confirmed.”
• If the vehicle has already moved to the auction lot, the customer must pick up
the vehicle from the auction location. We will NOT move the vehicle anywhere
else.

NOTE: Please advise customers that all Hold requests are ONLY a request. It is NOT a
guarantee that the hold will be successful.
13 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
Repo Inventory Release Request/Confirmation: Servicing staff will confirm that the customer has paid
the quoted reinstatement amount due, and that the STIPS, if applicable, have been received and
uploaded to FileNet.

 Servicing staff will email a Servicing supervisor to queue for release request
 Once the Servicing Supervisor or Reinstatement Admin verifies certain account criteria, then the
account will be conditioned with a request to release the inventory.
 Once the account shows “Repo Inv Release Confirmation” it is okay to provide the phone
number to the Repo Vendor or Auction to schedule an appointment for pick up.
• Note: Check Daybreak to confirm vehicle location.
 The phone number will be found in the Collections App under the Comments tab or refer to the
Repossession Agent Contact Sheet.
• NOTE: Remember to provide the customer with the necessary information from the
“Details of Reinstatement" section.

NOTE: DO NOT release the address of an Auction or Repo Lot.

14 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
The following example details the events of a reinstatement in the comments thread.

Advise the customer that the

vehicle has been released and
they must make an
appointment for pickup with
the Repo Company or Auction.

Advise the customer that

it may take 1-3 business
days to be authorized.

15 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 WORKING IN THE REPO APP

The Collections App provides an easy way to view RDN information right from the app! This allows
collectors to view Repo invoices, hold and close repo orders through RDN properly before the call ends.
This ensures a Repo Unwind does not occur. The RDN system will communicate to the Repo Vendor
which will advise them to either hold off on all repossession efforts or close out the repossession order
all together.

Begin by opening the tool bar and navigate to the Repo Orders section.

To view Repo charges, click Repo Invoices.

The page will display the charges associated with the repo efforts. For more information on each
charge double click the line item desired.

16 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
This will launch a page detailing the charge.

Skipbusters
42 Wallaby Way
Sydney, CA 90010

Skipbusters
42 Wallaby Way
Sydney, CA 90010

17 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
To view RDN information from the Collections App click Repo View.

The Repo App page will display all Repo events that have occurred on the account and the Repo
Vendors name. “Repo Order Status – Submitted” is the most recent open order. “Closed” is any
previous Repo Orders that were closed out, usually due to the customer paying current, and
Completed is a Repo Order where the vehicle was picked up, hence completed.

“Draft” may appear in the queue that is being worked by the collector which indicates that an Open
Repo Assignment may open soon. A double draft may occur as well. This happens when there is
reason to believe the vehicle may be located in various city’s/states.

18 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
The top bar provides a “Change Status” selection which will allow the collector to place a Hold or
Close on the repo process in RDN.

19 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
Within the Repo App beneficial information will display:

a. Account Info: Displays important account status information

b. Vehicle Info: Displays description information about the vehicle
c. DRN Results: Displays number of times the vehicle has been spotted
d. Sighting 1 and 2: Displays address of where the Digital Recognition Network (DRN) has seen the
vehicle
e. Customer Info: Displays customer information
f. RDN Info: Displays Repo Vendors name, case number, date sent, status and any communication
between the lender and the Repo Vendor (Never leave comments asking the Repo Vendor to act
on behalf of the Company in any manner. E.g. Leave a note, knock on door etc.)
g. Invoices: Displays charges assessed by the Repo Vendor (call Repo Vendor for the most accurate
amount when quoting)

20 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
At the bottom of the page there is a section for comments. The collector has the ability to place and
read comments in correspondence with the Repo Vendors Agent. If the collector has a new address
they would like the Repo Vendor to search, simply add it to the comments.

 Note: DO NOT ask the Repo Vendor to act on behalf of the Company in any manner. E.g.
Leave a note, knock on door etc.

When accessing a “Completed” order, there are beneficial selections on the tool bar such as View
Images.

This will launch pictures of the vehicle that the Repo Vendor snapped at the Repo Vendor’s lot after
the repossession event. This may assist with customer claims of the vehicle being damaged during the
repossession event.

21 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 Important Account Conditions
Below is a list of important account conditions to be familiar with, including the conditions
importance.

Once 45+DPD, draft is completed and account conditioned:

Why this is important: If contact is made with the customer it is extremely important to alert the
customer that the vehicle is assigned for repossession unless the necessary payment is received
or a payment arrangement is set.

If collateral has NOT been recovered and we want to hold the repossession efforts:

Why this is important: If the customer cures account or sets an acceptable arrangement, then
this condition will be used/display to avoid the Repo Vendor from picking up the vehicle.

If the vehicle will not yield profit from the sale:

Why this is important: The customer may call in asking why we have not picked up the vehicle
yet, usually during a voluntary surrender. The collector is to explain to the customer that we will
not recover the vehicle. Repossessing the vehicle will cost us more than what we may receive if
the vehicle was to potentially sell at auction.

22 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 If collateral has been recovered by Repo Vendor:

Why this is important: If contact is made with the customer then it is important to advise what
the customer needs to do to recover their vehicle and identify if a hold at agent or hold sale is
appropriate. (Reinstatement/Redemption)

NOI has been generated and sent to customer:

Why this is important: If contact is made with the customer it is important to advise the
customer of our intent to sell the vehicle and what is needed for them to recover the vehicle.
Certain states require that we only collect what is outlined on the NOI.

Request for Title to sell collateral at auction:

Why this is important: Once the title is received the sale of the vehicle will continue at auction.
The title is sent to the auction company for the sale.

23 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 If a transport has been authorized, then okay to move to auction location:

Why this is important: It’s extremely important to advise the customer that the authorization to
move the vehicle to the auction has been granted and that if reinstatement/redemption occurs
they will need to pick it up from the auction house. The auction company may be outside of the
customer’s local area.

If a unit has arrived at an auction

Why this is important: It’s extremely important to advise the customer that the vehicle is now at
the auction location and pick up will need to occur from there. We will not move the vehicle.

If NOT at auction YET and customer promises to pay (HTQ):

Why this is important: If the vehicle has not been authorized for transport to the auction
location then the “hold at agent request” condition is to be used so that it may be held at the
repo company lot.

24 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 If at auction and customer promises to pay (IHR):

Why this is important: If the vehicle has been confirmed at auction then the “Hold Sale”
condition is to be used so that the sale may be prevented at the auction location. The customer
should be made aware that it is at auction and pick up will need to occur from this location. We
will not move the vehicle.

Release has been “requested”:

Why this is important: It is important to advise the customer that this is only a request and that
it may take 1-3 BUSINESS days before the Repo/Auction Company receives notification.

Unit has been released:

Why this is important: Once the authorization condition is stamped the customer is welcome to
schedule an appointment to pick up the vehicle from its current location. (Repo Co. lot/Auction
location)

Hold has been removed:

Why this is important: Once the hold is removed the process will continue where it last left off
to continue with the transport/sale of the vehicle. This occurs usually due to a broken promise.
Holds normally last 10 days.

25 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only
 Vehicle is set for sale at auction

Why this is important: At this point the vehicle will be cycled through different auction sessions
until the vehicle is sold. If contact is made with the customer it is important to advise that they
are still liable for the loan balance. The sale may not reap the whole balance on the loan.

Vehicle has been sold

Why this is important: If contact is made with the customer then it is important to discuss the
sale of the vehicle and the deficiency balance for which they are still responsible.

26 | P a g e
v.7.27.2018
Created by Corporate Training & Development for internal use only