Servicing of consumer finance loans has been an “in-person” activity historically, with the ability to physically wave a hand or raise a flag and have a supervisor walk over to assist with a particularly nettlesome customer issue. Moreover, handoffs between different servicing groups—particularly bankruptcy, collections, and collateral recovery (foreclosure/repossessions)—have always been an area for heightened risk and often the root cause for operational and compliance breakdowns.

Read the full alert from Paul NoringMichael Canale, and John DelPonti.