UCW Panel Recap: Aligning Lenders, Forwarders, and Agents for a Sustainable Future

At last month’s Used Car Week conference, I moderated a lively panel discussion including several auto recovery and financial services experts. We discussed how the repossession industry is at a crossroads of rising costs, insurance challenges, and strained relationships. The conversation focused on three critical themes: contracts and fairness, affordability and sustainability, and accountability and transparency.  

Contracts and Fairness

There remains a lack of consensus of “fairness” across stakeholders in auto finance and recovery.

• For lenders: Rewarding better performance by providing incentives are key. Some lenders are introducing dual indemnity clauses to share risk and ensure accountability.
• For agents: Repossession fees have stagnated while costs and service requirements are rising. Adjusted for inflation, fees have declined certainly in the past few years. Agents continue to advocate for CPI-based escalators or annual increases to keep pace with inflation.
• For forwarders: Transparency in fee pass-through is critical. Agents often receive only a fraction of approved fees, fueling mistrust.

 Ultimately, fairness is about more than price—it’s about shared responsibility and open dialogue.

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Affordability and Sustainability

Insurance costs continue to rise sharply, and losses are outpacing premiums. With the number of insurers declining, the viability of auto repossession businesses is in question.  

Losses are split between lender processes and agency practices. Lenders can reduce risk by proactively managing portfolios and preventing lien-loss, while agencies can use telematics and better enforce safety practices.

90% of cars have telematics // less than 10% of agencies currently use them

Both lenders and agencies have levers within their control to improve affordability, as yet there is minimal evidence in industry loss dynamics that changes have been broadly adopted.

Accountability and Transparency

Forwarding is often described as a “black box,” with unclear fee structures and limited visibility.Agents and lenders want audits, open-book practices, and standardized contracts. At the same time, forwarders must show integrity in fee distribution and compliance support.

Transparency is the foundation for trust and long-term success.

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So what’s the bottom line?

Auto repossession is currently riding a wave of unprecedented volumes, yet numerous warning signals are flashing related to underlying health and sustainability. Is this moment an inflection point?

The industry has the option to move beyond conversation and commit to actionable solutions, including:

• Embedded CPI escalators in contracts.
• Technology investments to reduce risk and increase safety.
• Commitment to transparency and accountability from and for everyone

MBSi can help. Our technology connects lenders, forwarders and recovery agencies with web-based and mobile app technology to execute repossessions in real-time while meeting industry compliance standards. We offer the only tools on the market that seamlessly integrate all parts of the repossession process in a single, digital platform built on the most advanced technology, helping you manage cases efficiently and securely from open to close.

Ready to learn more? Visit: https://www.mbsicorp.com/recovery-connect

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