Bankruptcy Search and Bankruptcy Monitoring for Auto Lenders

When a borrower files for bankruptcy, lenders suddenly find themselves competing with other creditors trying to recover any portion of the borrower’s limited funds. In most cases, the lender is left wondering if, and when, they’ll ever recover their debt, and if so, how much can they possibly get back?

For the last 40 years, lenders have stayed away from the idea of pursuing their debt on a loan when it’s gone into bankruptcy status because of the tiresome and risky hours spent trying to navigate the bankruptcy court. All of this can be done for a portion of a debt they may never see.

In most cases, if you’re a lender, chances are you don’t have the knowledgeable personnel on your team to handle a bankruptcy case. To acquire this kind of expertise, it can take years of training to understand the main components of bankruptcy law.

As a lender, you can hire a law firm to handle your case, but this can cost thousands of dollars and after time spent attempting to recover your debt, there may or may not be a payout. Overall, when a borrower goes bankrupt, the lender is left in a risky situation.

Until now.

With Verifacto’s proprietary bankruptcy search application and easy POC (Proof of Claim) system, lenders can file a claim in bankruptcy cases to get their debt paid without having to deal with the expensive legal department or hours of wasted processing time.

POC Filing Technology

Verifacto’s Easy POC System works by giving the lender a user-friendly platform that handles all of their bankruptcy inquiries without the need of a professional:

  • The POC system contacts the bankruptcy court and gathers all necessary information upon the lender’s request.
  • All required data is prepared and the POC is generated for the lender to verify its accuracy.
  • The system files the POC with the bankruptcy court for the lender and then provides the successful filing receipt straight to the lender.

The typical filing process without Verifacto’s system can take hours per each POC and can cost over $1,000 leaving the lender with a lot of manual labor and high expenses. Not to mention the uncertainty if they’ll ever reclaim their debt. Once lenders implement Verifacto’s bankruptcy POC system, POC preparations reduce dramatically while providing the lender with full backup support.

Bankruptcy Search Tool

While getting your debt back is important, as a lender, you also want to be prepared for any unexpected bankruptcy with your customers.

Verifacto’s bankruptcy search application allows lenders to pull real-time data from bankruptcy courts to immediately discover if a potential or current customer has filed for bankruptcy, how many times they’ve filed, and a prediction of the likelihood that they’ll file in the future. This gives the lender full control and the ability to view all essential data to help make better business decisions.

All bankruptcy court records are conveniently viewed from the lender’s screen for any bankruptcy district across the country, giving lenders ultimate access to better protect their business.

Contact Verifacto to Help Reclaim Your Debt

 At Verifacto, our bankruptcy search application and easy POC filing system have saved lenders up to 95% on manual labor costs and up to 600% on legal fees. You don’t have to be a bankruptcy expert to use our system. Our simple yet powerful technology helps you save thousands of dollars regularly while keeping you informed on your customer’s bankruptcy status.

To learn more about our bankruptcy search application and the overall risk management platform, contact us today so you can join the lenders that are saving thousands of dollars while keeping their businesses protected!


auto insurance tracking

Game-Changing Software Makes Auto Insurance Tracking Easy

As an auto lender or dealer, you must take the correct steps involving auto insurance tracking. If one of your borrowers doesn’t have proper car insurance and they are involved in an accident, your company is now at risk. Auto insurance tracking is tedious. From keeping up with your portfolio to contacting every borrower, there is plenty of room for mistakes. This is where Verifacto’s game-changing software comes in.

Verifacto is a leading provider of cloud-based software that enables auto lenders and dealers to quickly and effectively track each borrowers’ auto insurance status. Our software provides a revolutionary and comprehensive platform to help lenders and dealers manage and reduce insurance risk at their company, so an uninsured borrower never falls through the cracks and your company remains completely risk-free.

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lender placed insurance

What is Lender Placed Insurance?

Despite its importance, many drivers in the United States do not have auto insurance. When a borrower leaves a dealership, they might have car insurance at that moment, but due to difficulties in payment, they could end up allowing it to lapse leaving the lender’s collateral unprotected. Auto insurance prices have skyrocketed making it more difficult for drivers to maintain the proper coverage. When this happens, the lender’s business is suddenly at risk. This is where lender-placed insurance becomes highly valuable.

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insurance tracking software

How Insurance Tracking Software Helps Auto Dealers, Financers and Insurance Companies

Dealers, financers, and insurance companies are taking a high and unnecessary risk if they don’t have a strong auto insurance tracking software system in place. Accidents from uninsured vehicles happen all the time and if a customer is involved in an accident and the lender is unaware of their insurance status, the company will take a major hit.

Verifacto’s Insurance Tracking Software is designed to take the stress off auto companies and help keep them on top of their borrowers’ insurance status at all times protecting them from unexpected losses. The insurance tracking platform provides better communication with borrowers and explains how they can easily fix their insurance deficiency. The platform also follows up with each borrower until the risk has been resolved ensuring nothing falls through the cracks.

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Payment Processing for the Auto Industry

One of the biggest concerns in the auto industry is ensuring borrowers can make their car loan payments on time. At Verifacto, our goal is to provide software that makes the loan payment process easy to use for both lenders and borrowers. The easier it is for a borrower to make a payment, the better the chance lenders will get their money on time.

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What is Collateral Protection Insurance?

What is Collateral Protection Insurance?

Collateral Protection Insurance (CPI) is insurance used by lienholders to protect themselves from financial loss. CPI is also known as force-placed insurance because this type of insurance is not sold to a customer, however, it can be placed on a vehicle when the borrower does not have physical damage (comprehensive and collision) coverage.

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Verifacto: Not Your Average Insurance Tracking Company

Verifacto: Not Your Average Auto Insurance Tracking Company

In the automotive industry, it’s crucial lenders, dealers and finance companies effectively track their customers’ auto insurance status. This allows lenders to stay on top of every update and keep their company safe from potential liability or monetary loss.

Nearly every auto insurance tracking company claims to help you save money, but Verifacto stands apart from the competition with its unique technology to put you, the lender, in control so you’re never in the dark when it comes to your customers’ insurance status.

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Benefits of Using Automated Payment Reminders

Benefits of Using Automated Payment Reminders for Auto Lenders

Manually sending out payment reminders to customers is a tedious and tiresome ordeal. Not only does it take up precious time, but if a payment reminder gets lost in the mail or misplaced by a customer, this puts a delay in your cash flow.

To reduce payment risks and save your company a lot of time, Verifacto provides automated payment reminders for lenders nationwide. This innovative technology results in effective accelerated payment collection for lenders and leaves borrowers satisfied with an easy-to-use payment process.

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Important questions to ask when considering auto insurance tracking.

5 Important Questions to Ask About Insurance Tracking

If an auto lender is not using insurance tracking with their customers, the company is taking a high and unnecessary risk which results in monetary loss from their customers that are not properly insured. When it comes to insurance tracking, lenders want to make sure they’re asking the right questions so they can get a better understanding of how to mitigate insurance and risk exposure to make a positive impact on their business.

Auto dealers, lenders, and finance companies need to effectively track their customers’ auto insurance status so they can stay on top of every update and keep their company safe from any unexpected loss.

Accidents from uninsured vehicles happen all the time and if a customer is involved, and the lender is unaware of their insurance status, the company can take a hit leading to loss of revenue across the board.

Verifacto’s insurance tracking allows lenders to efficiently monitor and minimize insurance risks. The platform also provides better communication with customers and explains how to fix their insurance deficiency. To ensure an increase in customers that drive with proper insurance coverage, the system automatically follows up with each customer until the risk has been resolved.

If you’re an auto lender considering adopting insurance tracking, here are 5 important questions to help you make the right decision.

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How CPI Can Positively Impact Auto Lending Margins and Reduce Risk

In today’s market, auto lenders are battling to maintain profitability and growth. Finance companies, banks and other lending groups are all competing for consumer auto loans. In this economic climate, it is imperative that lenders protect their bottom line by minimizing losses.

One initiative that lenders can take to help minimize losses and protect their profitability is to purchase collateral protection insurance (CPI) to help control their risk. This shields lenders in cases where the consumer isn’t current on their insurance and is either in an accident or the vehicle is returned from the borrower with damages. In addition to controlling the risk, a sound CPI program will increase profitability through an entirely new profit center, as well as help to retain existing customers. It’s a win-win-win for lenders.

How Does CPI Benefit Lenders?

Most CPI programs are administered by a third party – the CPI administrator tracks all borrowers in the lender’s auto loan portfolio to make sure that each loan has the necessary coverage in place. If the borrower has not purchased coverage for his car, or has allowed it to lapse, the administrator sends out a series of notifications informing him that he must correct the coverage issue immediately. If the borrower still does not comply, the lender has the option of placing CPI coverage on the loan and adding the premium to the loan balance.

A number of auto lenders today “self-insure” their exposure to uninsured collateral by simply absorbing the losses. But many auto lenders have no idea exactly how much exposure they are actually carrying, because they aren’t identifying and tracking those borrowers who have not maintained coverage on their vehicles and therefore can’t accurately budget for it.

A CPI program ends up being the most efficient way to control the risk of uninsured collateral since only those borrowers who have not maintained the required coverage on their cars end up paying for it. When deciding to implement a CPI program, it’s important that lenders select an experienced company with the technological and customer service capabilities to accurately identify those borrowers who have allowed their coverage to lapse, or have policies with other deficiencies such deductibles that are too high. This is where Verifacto comes in.

How Does Verifacto Help Lenders Administer Collateral Protection Insurance?

Verifacto’s  CPI solution module is designed with advanced compliance and tracking technology that lets you, as a lender, see and control your own portfolio insurance risk. Since auto insurance costs have been skyrocketing lately, lenders may be experiencing increased policy cancellations and more uninsured drivers on the road. Verifacto’s CPI solution can control that risk, increase a lender’s profitability and help retain customers.

Why Verifacto?

Verifacto provides auto lenders with a Collateral Insurance Program that allows the lender to reduce their risk to a minimum with a cost-effective and technology based solution. Choosing Verifacto allows auto lenders to:

  • Decrease losses caused by excluded perils
  • Decrease uninsured portfolio losses by controlling your risk
  • Go beyond simply identifying customer coverage issues – now you can solve those issues
  • Increase and track compliance of the CPI providers
  • Increase automation and efficiency
  • Increase Profitability

Contact Verifacto today at to receive a no obligation demo and see the advantages for yourself. Our demo will provide a deeper look into the best ways to utilize our Collateral Insurance Program as well as an assortment of other solutions to keep you better protected.