Friday, Aug. 07, 2020, 10:26 AM
Fintech and automated loss mitigation provider Constant rolled out an enhancement to its solution aimed at helping finance companies limit delinquencies and charge-offs as they navigate through modifications offered because of the coronavirus pandemic.
The company launched AutoCare, a module on its cloud-native Software as a Service platform intended to fend off delinquency and prevent involuntary repossessions.
AutoCare is designed to tackle the most complex part of offering a contract modification: determining willingness and ability to pay. Constant’s software can provide finance companies with a real-time view of a contract holders’ financial situation through multiple data sources — avoiding credit blind spots — determining their ability to pay and presenting a sustainable relief option based on investor rules that can be accepted and signed, all in minutes.
AutoCare also includes a fully automated voluntary repossession feature for contract holders not able to retain their vehicle.
“Historically, it has not been cost-effective to offer mortgage-style hardship relief for small-dollar loans,” Constant president and chief operating officer Carissa Robb said. “The timeline to collect and record a total loss is shorter for auto loans, as compared to real estate secured loans. As relief options tighten, delinquency worsens and charge offs accelerate, few relief options are available to restructure and return borrowers to performing. Until now.
“Offering mortgage-style relief options on auto loans can help reduce delinquency roll rates, charge-offs and bankruptcy,” Robb continued. “Where appropriate, offering non-retention options like an automated repossession tool that allows borrowers to voluntarily surrender their vehicle if a workout option is not appropriate, protects asset value.
“By offering a 24/7 self-service option to engage with the borrower and incorporating their responses into a complex, proprietary decision engine, lenders are able to understand the duration and severity of a financial hardship,” Robb went on to say. “This precision allows for an appropriate recommendation to manage the outstanding debt, with the least amount of disruption to the customer and the lender.”
For more details, go to https://www.constant.ai.