Welcome aboard, Shannon. In Alabama, our banking partner handles the defaulted loans. Around 90 to 120 days late, I provide authorization for repossession. The number of days late varies from consumer to consumer, depending upon their communication with the bank and Ways to Work.
The bank repossesses on defaulted loans so that Ways to Work can recoup some money when the cars are sold at auction. The sale price has ranged from $25.00 to $1800.00. Additionally, we choose to repossess the cars because we do not want the word on the street to be that Ways to Work does NOT repossess cars. The bank reports the repossession to the credit bureau and Ways to Work pays the bank for the balance due on the loan after auction. Once the bank has been paid, Ways to Work does not pursue collections via small claims court, garnishments, etc. The loss on defaulted/repossession has been tolerable, as our program is averaging a 6 - 7% default rate. I hope this information helps. Angie Butterfield, M.S., FDC Ways to Work Program Director Family Guidance Center of Alabama, Inc. 1284 Perry Hill Road Montgomery, AL 36109 (334) 270-4100 ----- Original Message ----- From: "Shannon Marchman" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Thursday, September 25, 2003 8:14 AM Subject: [WTW] Introduction and Question > I would like to take this opportunity to introduce myself. My name is > Shannon Marchman and I am the new Ways to Work program director in > Wilmington, De. I recently joined the discussion group and as we are in the > process here of setting up our program, I have a question that I would like > to pose to the group. > > We are in the process of finalizing our bank agreement and are discussing > the loan default process. We are proposing the following: > 1) Loan default reaches 90 days delinquent, we purchase the loan from the > bank. The bank reports to the credit bureaus loan paid by third party. > > 2)Upon assuming loan responsibility we proceed with collection efforts-if > debt ultimately charges off we proceed to court placing judgment against > client for loan amount-garnishing wages as applicable. > > Our thought with this proposal is to ensure that the credit report reflect > any charged off debts resulting from the loan, and to limit repossession of > the vehicle. I would appreciate any insight that the group can provide > stating other options, or thoughts on our proposal. I look forward to > attending the WTW Institute and continued support from all of you. Thanks in > advance for responses. > > Shannon Marchman > Director,Ways to Work Program > Nehemiah Gateway CDC > 201 W.23rd Street > Wilmington, DE 19802 > (302)655-0803 Ext.16 > (302)655-8372 Fax > >
