In a recent report commissioned by Equifax, the credit reporting bureau discovered that there are currently 64 million auto loans outstanding with a balance of over $900 billion – a record high. In addition, new auto loans, originating in the first quarter of 2014 account for $163.5 billion in credit. Surprisingly, with record high balances on these loans, the delinquency rate is quite low – accounting for less than 1% of these outstanding balances.
In recent news, The Federal Trade Commission found that Consumer Portfolio Services (CPS), a subprime auto finance lender, used a number of “illegal tactics” while servicing customer accounts and attempting to collect on consumer loans. The company will pay more than $5.5 million to settle the charges that affected over 160,000 accounts. According to the FTC’s findings, CPS was found in violation of servicing loans by misrepresenting owed fees, collecting on monies that borrowers did not owe, improper assessment and collection of fees – including making unauthorized debits from borrowers’ bank accounts and harassment of consumers.
Good news for consumer auto lenders, with vehicle sales on the rise, consumer satisfaction with financing providers continues to increase. According to J.D. Power’s 2013 U.S. Consumer Financing Satisfaction Study, roughly 95% of auto consumers indicated that, thanks to a positive customer service experience, they would patronize the same lender when purchasing a new vehicle or recommend them to a friend or family member. The study’s subjects – representing buyers of luxury as well as non-luxury vehicles – pointed out satisfaction with lender communication, prompt account updates, and customer service as the most important factors in a satisfying car financing experience. In the crowded retail automotive industry, consumers are faced with many choices when looking for auto financing. Consumers are looking for more than just a good interest rate – they are also looking for positive onboarding and easy finance servicing experiences.
As enterprise communication strategies play a bigger role in customer experience and loyalty, there is an increased need to re-engineer the end-to-end processes for managing core servicing document output to resolve document related issues at their origin.
Enterprise communication strategies are playing a bigger role in customer experience and loyalty these days. This means increased pressure to re-engineer the end-to-end processes required to manage core servicing documents and on-demand letter output. Not addressing issues at the front end of the process guarantees increased problems at the backend – with your document outputs and customer interactions.
Welcome to the new CEDAR Document Technologies blog! For the past 20 years, CEDAR has been a pioneer in the field of customer communications management (CCM), and our team of subject matter experts have a wealth of experience they are anxious to share. Our new blog will provide best practices, tips and insights into how you can drive better business results through improved customer communications.