Dave and Fred, Our concern is that yes, we definitely wish to give all the loan recipients the benefit of the doubt and yes this is a second chance, but there are always a few clients that take advantage. Since we started using the scorecard we have made better decisions nonetheless we have had a couple of clients that are taking advantage.
If a client cannot make a payment because they have lost their jobs, we do not repossess that car. In Canton Ohio our unemployment rate has been unbelievable. Nearly the highest in the state and Ohio is like 13th in the United States for its unemployment rate. We have had many businesses close down. So we are sympathizing with these individuals. BUT we have the client that never calls and just stops making the payments. Not many but we do have them. They hide their cars etc. The key might provide the client more of an incentive to make the payment knowing that a key is out there and the car could be repossessed. OWNERSHIP for their OBLIGATION. Robin S -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Fred Weingarth-PFCS Sent: Friday, July 09, 2004 8:09 AM To: [EMAIL PROTECTED] Subject: Re: [WTW] 2nd set of keys Dave, I agree with you 100%. I was amazed at the number of programs that keep a duplicate set of keys. Fred Weingarth, WtW New Philadelphia, Ohio ----- Original Message ----- From: "Dave Washburn" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Thursday, July 08, 2004 3:50 PM Subject: Re: [WTW] 2nd set of keys > Hello, > > It was interesting to read the responses to this question. I did't > realize keeping a second set of keys was so popular among programs. > > But I'd like to offer a different opinion, for the record. Upon > originally considering this practice when we started the program in > 2001, we decided it was not consistent with one of our core > philosophies. We believed that in order to give a true "second chance" > (perhaps a "last chance"), we needed to treat our customers with the > same respect received by the most valued customers of a traditional > bank. That meant, among other things, affording them the same level of > trust, as well. Therefore, we would not keep a set of keys. After > taking the customer through a careful screening process, making clear > the consequences of non-payment, and providing money management > instruction, our hope was that our relationship with the customer > built in this way would help to support their commitment to pay the > loan in full. > > Other considerations: Did I really want to be the person taking away > the car? (No, considering some obvious liability concerns). Did we > have the means to store the vehicle if we needed to? (No, in downtown > Honolulu, parking is a very limited commodity). > > With most customers, the issue is moot. I've found that the vast > majority want to be responsible borrowers. The biggest obstacle to > repayment has been loss of employment, or underemployment. > > So far, operating under this philosophy and with strong collection > practices, we've been able to limit our default rate to 8.9%. I > suppose it's a matter of opinion whether this take on program > operations is much different than the other. I just thought it was > important to share another point of view. > > Thanks, > Dave > > Dave Washburn > Ways to Work Program Manager > YWCA of Oahu > 1040 Richards Street > Honolulu, HI 96813 > 808-538-7061 ext. 248 (direct) > 808-531-8541 (fax) > > >>> [EMAIL PROTECTED] 7/8/2004 4:06:37 AM >>> > Hello everyone, > > We are looking into the possibility that our program receive a set of > keys for vehicles purchased through Ways to Work. > This would save money if a repossession had to take place. My question > is > this: How do we do this? Do we need to be placed on title as 2nd lien > holder? Any suggestions would be appreciated. > Thank You, > Wendy Green, Canton Ohio > > Wendy M Green > > Ways to Work Program Assistant > > Trillium Family Solutions > > 330-454-7066 ext 344 > > This message may contain confidential and/or privileged information. > If you are not the addressee or authorized to receive this for the > addressee, you > must not use, copy, disclose or take any action based on this message > or any > information herein. If you have received this message in error, please > advise the sender immediately by reply e-mail and delete this message. > Thank > you for your cooperation. > >
