Wrongful repossessions caused by lien loss remain one of the most expensive and preventable risks in auto lending. When borrowers refinance or pay off loans through third-party servicers, liens can be released without a lender’s knowledge. And if a repossession proceeds using outdated lien data, lenders can face between $50,000–$150,000+ in potential liability per incident.
While many banks have a verification workflow in place, the process can be reactive and manual, leading to delays and oversight. Paired with manual verification due to the lack of a centralized data source for lien information, this creates exposure to:
That is why lenders are turning to automated lien verification solutions to streamline the process and mitigate wrongful repossession risks.
Using MBSi’s Lien Verification solution, lenders can automate their lien verification process to confirm who the active lien holder is. If loss is detected, the solution places the case on hold and prompts the lender for manual verification.
By automating this process, lenders can:
The Lien Verification process can be kicked off in a variety of ways—whether through case creation, automation, batch upload, or a single case check. Once initiated, the solution will conduct a nationwide search using VINchex data to identify any potential changes. It also accounts for any known aliases, ensuring a thorough check when verifying status. If the lien is verified, the vehicle will be marked with a confirmation and date stamp. And, if it remains unverified or there’s been a change in lien holder, it is automatically placed on hold and prompts for a manual review.
In addition, you can manage and monitor all your cases in the Lien Verification Queue. The queue gives you a clear view of vehicles that are either awaiting verification, have been verified or have potential loss, allowing you to work through your cases seamlessly.
Leverage our partnership with VINchex to proactively monitor your portfolio for potential lien loss. Developed by professional skip tracers, VINchex utilizes a proprietary 3-source data waterfall to locate potential lien loss across 48 states with 87%+ accuracy. This allows you and your team to feel confident in the information you are receiving to make informed decisions.
Wrongful repossessions due to lien loss aren't just a financial risk—they're a preventable one. By replacing reactive, manual verification workflows with an automated solution, lenders can catch lien changes early, protect their bottom line, and maintain borrower trust.
MBSi's Lien Verification solution, powered by VINchex data, gives your team the tools to verify lien status before recovery action is taken, reducing exposure to costly errors, regulatory penalties, and reputational harm. Whether you're processing a single case or managing thousands, the solution scales with your portfolio and keeps your team informed at every step.
Ready to mitigate wrongful repossessions due to lien loss? Contact us for a demo today.
Copyright © 2025, MBSi Corp. All rights reserved.
MBSi is proud to be a member of the Agero family of companies and pleased to connect our lender partners to the many services and products available through Agero.
Copyright © 2025, MBSi Corp. All rights reserved.
MBSi is proud to be a member of the Agero family of companies and pleased to connect our lender partners to the many services and products available through Agero.