In Focus Collections
mechanical condition, service history, mileage, vehicle documentation, tyre depths, and windscreen damage. Using touch-responsive vehicle schematics
of the front, back, sides, and interior of the vehicle, customers are given the opportunity to submit a self-appraisal of the vehicle’s current cosmetic condition. Following which, the end user signs an electronic Vehicle Condition Report (e-VCR) and an itemised breakdown of charges is generated, including VT liability (payments to reach 50%), arrears, de-hire damage and excess mileage charges. At this point, VT Validate gives the
customer the option to proceed with VT and agree to the outstanding costs, or to cancel the VT. In the event the hirer wants to cancel and keep the vehicle, this is documented and reported back to the lender electronically with a recorded reason for cancellation. Where the hirer decides to proceed with the VT, they sign a VT form electronically to complete the process. The customer is given the opportunity to
make payment in full for the costs identified or come to an affordable payment plan with their lender. VT Validate instantly generates
a collections instruction and allocates to a professional agent to arrange to go out, validate the customer’s vehicle self-appraisal, and collect the vehicle. If the hirer has under-declared any
damage, this will be identified, and the customer is requested to sign an updated e-VCR. The above process is robust, fair, and transparent for the hirer, and enables the lender to confidently pursue the hirer for legitimate de-hire charges. One of the main challenges we faced was
to create process that all hirers can use, even those who are less ‘tech savvy’. We overcame this by introducing the Agent Assisted VT Validate service, so there was inclusion for those requiring more support. Integration with a lender’s loan-management system is available and quick. Through the loan cycle, lenders can
easily lose contact with, or even disengage customers. Collecting by direct debit distances a lender from good paying customers (the customers who are in arrears will always be the focus), and, therefore, the lender is at risk of losing a good customer at halfway point of the agreement. VT Validate
enables a lender to reengage with a hirer at a critical point of a customer agreement.
Results and successes So, they told us it was impossible to do! Well, role on 18 months and here we are with the VT Validate solution that delivers over 75% of VTs completed within seven days. Since launch, VT Validate has on-boarded six mainstream lenders from banks to asset- finance lenders, servicing 1,601 customer- requested VTs. The application has been responsible for allowing every customer to make an informed decision regarding VT and, to date, 8% of those customers decided against ‘VTing’ and either continued the agreement or settled the finance loan. Our research also shows us that, for a
lender to compliantly process 35 VTs in a month, it took one full-time administrator in terms of resource. The VT Validate process is fully automated and, once the VT is instructed, the platform does the rest, providing additional savings to the lender. The process has seen an increased recovery rate on V5C documentation. This has had a direct impact of increasing residual values and reducing days to sell, reducing unnecessary costs to lenders for V5 duplicate requests, and resulting in assets being sold at auction first time round. A recent VTV case study signified a
reduction in post-VT damage-related disputes and has reduced Financial Ombudsman Service referral complaints significantly, thus reducing unnecessary expense and administration time further. Although such costs are difficult to evaluate, VT Validate has shown a remarkable impact in dispute and conflict resolutions, allowing for the crystallisation and recovery of debt which was previously not possible. End-user feedback shows us that 77% of
customers found the VT Validate vehicle- appraisal application easy to use, 100% of those customers were able to accurately record the condition of their vehicle using the VT Validate appraisal app, with 88% confirming that VT Validate helped them understand their rights and obligations in relation to VT and 78% of customers think that more asset-finance lenders should invest in technologies like VT Validate to engage with their customers throughout the life of their finance agreement. CCR
December 2019
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