Category: News

Nationwide focus on compliance standards leads recovery industry professionals to RISC’s standardized compliance training.

TAMPA, FL 10/04/2017 – Recovery Industry Services Company (RISC) announces unprecedented growth and adoption of its industry leading Certified Asset Recovery Specialist (CARS) and CARS-FC certification program. For more than 10 years, RISC has lead the way in recovery agent training with its CARS program which has certified more than 10,000 individuals since it was launched in 2002. With an ever increasing focus on compliance, lenders, forwarders and repossession professionals have sought standardized training programs and reporting to internal and 3rd party auditors, such as the CFPB.

The industry’s focus on compliance has created a surge in the number of companies that require CARS certification for all employees. “Since June, more than 3,000 individuals have become CARS certified, with another 2,800 professionals currently preparing for the exam. By the end of Q3, the nations’ 5 largest forwarding companies had certified all of their employees with CARS-FC, and more than 600 repossession companies have begun the process of having all their employees, not just their drivers, CARS trained,” said Stamatis Ferarolis, founder of RISC.

“We are proud to be the only compliance certification program accepted nationwide by all lenders and forwarders,” Ferarolis continued. “From the CARS certification program to vendor vetting to lot inspections, RISC has developed a comprehensive solution that ensures compliance by enforcing standards and teaching individuals how recover vehicles safely and handle sensitive data.”

This Spring, at lenders’ request, RISC created the Certified Asset Recovery Specialist-Forwarding Company (CARS-FC) training program as an extension of the industry standard CARS program. CARS-FC consists of a comprehensive set of applicable laws and regulations specific to forwarding company personnel to provide standardized training in all areas of compliance.

RISC would like to recognize the following forwarding companies that committed and certified their personnel on the standard RISC CARS-FC program. We would like to thank these companies, and others, for their commitment to the effort of standardized compliance for forwarder company personnel:

• Primeritus Financial Services
• ALS/Resolvion
• American Recovery Service
• Del Mar Recovery Solutions
• MVTRAC
• Plate Locate
• Synergetic Communication Inc.

For questions about the RISC CARS or RISC CARS-FC program, or to sign your company up, please contact Holly, at [email protected].

About RISC
RISC is an organization dedicated to providing services specific to the collateral recovery industry and advocate on behalf of all professional practitioners within the industry. RISC is dedicated to the professional training and certification of collateral recovery specialists. For more information, visit www.RISCUS.com.

RISC is pleased to announce that Holly Balogh has been hired as the President and COO of RISC, the leading compliance and training company for the Recovery Industry. Stamatis Ferarolis will remain as owner and CEO. “RISC continues to be at the forefront of the recovery industry for compliance and training. With the growth we have seen from our recent partnership with MBSi, we needed to bring additional leadership with deep industry experience to ensure we are positioned well to support the growth that we are seeing,” said Stamatis Ferarolis. “We are thrilled to have Holly join RISC as President and bring her wealth of recovery and compliance experience to our customers.” Holly joins RISC with over 5 years of industry experience most recently working as the Chief Operating Officer at RDN, a business unit of KAR Auction Services, Inc.

Balogh brings more than 25 years of business experience to RISC including her experiences at RDN, formerly as the Vice President of OneWest.net, a technology service company based in the rocky mountain west, and as an experienced manager at Accenture, an international technology and management consulting company. “From my experiences working in the recovery industry, I am aware that RISC provides the gold standard of compliance and training through their CARS program. With their recent growth, as well as lender and forwarder company adoption, they set the standard in the industry for training, lot inspections and vetting services. I am thrilled to join RISC and to bring my compliance and industry experience to the business,” said Balogh.

Balogh can be reached at [email protected].

TAMPA, Fla., May 26, 2017 – Recovery Industry Services Company (RISC), the industry-leading provider of Collateral Recovery Training, Certification, and Compliance Solutions, today announced that it has signed a definitive agreement to acquire Recovery Compliance Solutions (RCS) in order to enhance its Vendor Vetting services as part of RISC’s overall compliance-related offering.

“RISC is a perfect fit for us,” read a statement from RCS. “They share our vision for ensuring that the most capable, well-rounded, and compliant individuals and agencies are operating on behalf of the automotive lending community. We are thrilled to be a part of the RISC family.”

RCS was founded in 2008 and has offices in St Louis, MO.

“The RCS team has built a very strong practice in repossession agent auditing. Their process is extremely thorough and by combining our teams we will be able to better serve our customers by delivering best-in-class compliance validation,” said Stamatis Ferarolis, president of RISC.

The acquisition comes at an exciting time as RISC has recently unveiled technology integrations which allow forwarders and financial institutions to ensure that agents meet their specific compliance standards all the way from agent selection through individual assignment and asset storage.

“RISC’s overall vision is to create a succinct experience allowing lenders to be sure that the agents they work with are thoroughly trained, comprehensively vetted, and in possession of secure and adequate storage lots,” said Ferarolis. “Through our technological integrations, lenders and forwarders can manage assignments with all of that compliance information at their fingertips. They can even specify their own custom compliance standards and push required policies and training courses to their agents. We’ve worked with the industry’s leading stakeholders, as well as bodies such as the CFPB to architect universally accepted compliance guidelines and integrate them with our solutions.”

To contact RISC, please email to [email protected] or visit our website, www.riscus.com.

The national risk management company is offering special pricing for the 100% online course, which covers the protection of consumers’ personal information.

RISC, a renowned leader and innovator in the risk management field, today announced its newest Continuing Education course for collateral recovery professionals, with special 50% discount pricing currently available.

The CE 11 course, which is offered 100% online, prepares recovery agency owners and agents to comply with federal regulations for protecting consumers’ Nonpublic Personal Information (NPPI).

In addition to covering Gramm-Leach-Bliley Act requirements specific to third-party disclosure of NPPI, the new course also examines the growing role of social media in the repossession process.
The CE 11 course is priced at just $49 through April 13, 2017, a discount of 50% off regular pricing.

“Professionals in the collateral recovery industry face an array of complex and fast-changing challenges, from rising insurance rates to lender compliance mandates and federal consumer protection regulations,” said RISC President Stamatis Ferarolis, a licensed training instructor for collateral recovery specialists across the nation. “In such an environment, it’s critical that recovery agents and agency owners continually advance their knowledge and understanding of the latest industry developments.”

Recovery Industry Services Company (RISC) is accredited via State of Florida License No. RS950001. RISC Educational Systems is the only collateral recovery training company that is licensed.

The CE 11 course provides recommended procedures for protecting NPPI from unauthorized third-party disclosure during the repossession process, specifically relating to: address verification (residence and place of employment); contact procedure (other than debtor); and skip-tracing.

Additionally, the course outlines how social media can affect the repossession process, such as:

• Potentially violating an individual’s privacy rights through the disclosure and/or dissemination of personal and/or disparaging information online
• Determining insurability, in part, through a review of an individual’s social media postings, including comments and photos

RISC’s industry-leading suite of Continuing Education courses has been developed to comply with Consumer Financial Protection Bureau and lender mandates across a range of specialty areas, including Field Recovery Procedures, Data Security and the Uniform Commercial Code.

All courses are offered 100% online, including final testing, and a certificate is issued upon successful completion of each of the 11 CE courses. The training provided is applicable in all 50 U.S. states and Puerto Rico.

“Our goal in developing certification and Continuing Education courses is to ensure collateral recovery professionals continue to serve their clients effectively, while complying with state and federal regulations that impact the repossession process,” said Ferarolis, co-author of the Field Recovery Specialist Operations Manual.

For more information about RISC’s Continuing Education programs and other services, please e-mail [email protected], call 866-996-7472 or visit www.RiscUS.com.

Enroll Now – CE 11

TAMPA, Fla., Jan. 2, 2017 – RISC, a nationally recognized leader in the risk management field, is pleased to announce its 10th Continuing Education course is now available 100% online, with special 50% discount pricing currently offered.

The CE 10 course covers Anti-Corruption/Bribery and the Americans with Disabilities Act (ADA), and will benefit professional recovery agents and recovery agency owners in meeting current and future compliance mandates.

The new online course also will assist collateral recovery professionals in understanding how anti-corruption/bribery safeguards and ADA legislation affect a collateral recovery business, both in the field and in the office.

“When choosing a Continuing Education provider, it’s vital to evaluate the program’s effectiveness in preparing collateral recovery professionals to be successful in the courts and on the streets,” said RISC President Stamatis Ferarolis, a licensed training instructor for collateral recovery specialists nationwide and co-author of the Field Recovery Specialist Operations Manual.

“For decades, the RISC team has been dedicated to developing compliance solutions exclusively for the collateral recovery industry,” Ferarolis said. “Through education, training and technology, we prepare you for continued career growth in a rapidly evolving profession.”

The Anti-Corruption/Bribery Section of CE 10 explains how to identify these criminal offenses and prevent them from occurring in your collateral recovery business. It is highly recommended that recovery agency owners ensure their employees receive ongoing, mandatory training specific to Anti-Corruption/Bribery and that this training be documented.

The Americans with Disabilities Act Section of CE 10 examines how this civil rights law prohibits discrimination against individuals with disabilities, including in the area of employment. The course material provides recovery agencies with guidance in formulating their corporate operational policies in compliance with federal law.

RISC’s 10 Continuing Education courses are designed to meet current lender and Consumer Financial Protection Bureau (CFPB) compliance mandates in areas such as Data Security, Field Recovery Procedures and the Uniform Commercial Code. The training provided is applicable in all 50 U.S. states and Puerto Rico.

Each course is offered 100% online, including final testing, and a certificate of completion is issued upon successful completion of each CE course. Additionally, the CE 10 course is accredited for eight hours of Continuing Education requirements in Louisiana.

Enroll Now – CE 10

Years ago, this was the advertising slogan for Purolator Oil Filters. Pay Me Now… Or Pay Me Later.

The advertisement following the slogan showed the advantage of using a time tested, very successful product as opposed to untested, unproven, less expensive products, copycat programs. That slogan is still logical today for any product introduced to the market place. Just as it is with professional certification programs for the collateral recovery industry.

The Certified Asset Recovery Specialist (C.A.R.S.) National Certification Program was introduced to the collateral recovery industry and the lending community in 1999 by what is now RISC Education Systems, the only state licensed school in the country that develops training and certification programs exclusively for the collateral recovery agents.

With over 7,000 recovery agents certified through the C.A.R.S. Program across the country and Puerto Rico this professional certification program has set Industry Standards in addressing every aspect of the self-help repossession process. Industry professionals recognize that they receive a professional certification program that has proven, over time, the benefits of managing the potential risks involved in the self-help repossession process. Anyone, whether it be a recovery agent or a lender who has experienced, or is familiar with the enormous costs associated with Wrongful Repossession litigation realizes that “paying later” is not a desirable alternative.

In his endorsement of the C.A.R.S. Program, Bogdan Rentea, one of the most knowledgeable lawyers in the country on the self-help repossession process stated, “I have reviewed your National Certification Program extensively, and I am convinced that it is a most valuable “tool” in dealing with the ever rising litigation and insurance claims within the Asset Recovery Industry.” Mr. Rentea added, “The comprehensive curriculum contained in this program should be required study for not only those seeking to enter the Asset Recovery Industry, but also for those who are already a part of this profession.”

William Bensley, a noted consumer advocacy lawyer stated in his endorsement letter regarding the lack of training within the recovery industry stated, “there is an exception. I have noticed that (recovery) companies that require certification by a nationally recognized certification program display evident superior management, knowledge and professionalism. This is most true of companies that require C.A.R.S. certification. I know of no more practical, comprehensive or effective asset recovery training or certification program.”

Read Full Testimonial

These testaments from prominent attorneys as well as testaments and endorsements from long-time practitioners in the collateral recovery business, who have been involved in lawsuits, can be powerful and favorable “tools” against Repossession lawsuits.

Read More Letters of Endorsement

Considering the long-term, tried and proven benefits and the low cost of the C.A.R.S. National Certification Program, “paying now” vs “paying later” makes good sense for both the collateral recovery specialist and the lender who issues repossession assignments.

In an industry such as the collateral recovery industry where there are many potential risks, buying time and court tested proven certification training is paramount to success. Buying a product that has not been proven simply because it is cheaper is a prescription for paying a lot more later.

 

Due to the numerous compliance mandates by the CFPB and commercial lenders that manage portfolios exceeding $900 Billion, it became clear that there was a critical need for a nationally recognized professional certification program for recovery agents who specialize in commercial asset recovery.

Recovery Industry Services Company (RISC) is proud to announce the Certified Commercial Recovery Agent (CCRA) National Certification Program in conjunction with the Author, Mark Lacek.  Mark has over 25 years’ experience in the commercial asset recovery industry and is certified in both federal and state court to consult and provide expert opinions on Wrongful Repossession litigation.

The CCRA is designed specifically for recovery agents who provide collateral recovery services to the commercial lending industry.  The recovery of commercial assets requires the recovery agent to be trained and prepared for circumstances that are very different from standard automobile and other consumer loan repossessions.  The CCRA National Certification Program addresses all those differences including the following

• Understanding that the Fair Debt Collection Practices Act (FDCPA) does not address commercial repossession practices.
• Understanding the various federal and state laws that affect the commercial asset recovery process.
• Knowledge of specific tools, supplies and equipment needed in the recovery agent’s work truck so that the recovery agent arriving at the scene of the defaulted commercial collateral is properly equipped to complete the recovery.
• Understanding the critical importance of a brief pre-recovery inspection when removing the asset from the customer’s property could save the CCRA and/or client thousands of dollars in unnecessary expenses.
• Understanding what will be involved, the time that may be consumed, and the tools necessary to affect the commercial asset will determine the fees charged to the client.
• Acceptance by commercial lenders who understand the importance of professional certification in managing the “inherent” risks associated with the self-help repossession process and in the event of Wrongful Repossession lawsuits.

Commercial assets are non-standard, defined as heavy duty trucks, construction equipment, golf carts, drill presses, various types of business equipment, farm equipment, exercise equipment, garbage containers, sewing machines, and much more.

On any given day a recovery agency could receive multiple repossession assignments on non-standard equipment.  The recovery agency must have the knowledge of federal and state laws that impact the self-help repossession process and also in-depth knowledge of equipment that will be needed to complete the repossession.  The knowledge of what to do is why commercial collateral recovery agents are unique and thus their training is specialized.

The escalation of Wrongful Repossession lawsuits and rulings by the courts holding creditors liable for the acts of the recovery agents they hire make professional certification a primary factor when creditors hire recovery agents.

The CCRA National Certification Program is the first program developed nationally for those who offer commercial asset recovery services and the numerous reviews by commercial lenders indicates the need for this unique program.

RISC is recognized within the collateral recovery industry as a leader in the fields of CFPB consumer protection training, risk management and industry standard compliance requirements.

RISC services include:  RISC Compliant Agent Network (CAN) membership, certification through the C.A.R.S. National Certification Program, C.A.R.S. Plus CE (continuing education courses), compliance vetting and training, office and storage facilities inspections, business consulting, repossession insurance consulting, lock-smith training and supplies, automotive key codes, discount programs, and a $1 million Client Protection Bond for members of the RISC Complaint Agent Network

For more information, please e-mail RISC at [email protected], call 866-996-7472, or visit our website at www.RiscUS.com

Why Continuing Education?

Courts across the country have consistently ruled that there are “inherent” risks associated with the self-help repossession process and untrained individuals who are not professionally trained to provide these services pose an elevated and unacceptable risk to public safety.

Documented professional certification and continuing education (CE) are the most effective ways to manage those “inherent” risks associated with the self-help repossession process and further ensure the public safety.   Not to forget, training the recovery agent to protect him or herself from possible peril.

With the advent of lender compliance mandates by the CFPB and the lending community also concerned about public safety and self-image, it is critical for collateral recovery specialists to provide continuing proof of their professional competency to their lender clients.

Multiple states have established educational provisions in order to obtain licensure.  For several years Louisiana has statutorily required that licensed recovery agents complete one continuing education course each year for renewing their license and many in the lending community are contractually making documented education and continuing education as one of their recovery agent’s requirements.

Since the inception of Louisiana’s continuing education requirements RISC has provided continuing education courses that meet Louisiana’s statutory requirements.  Further, RISC continuing education courses provides training that are applicable to all 50 States and Puerto Rico.

Continuing Education (CE) Courses

RISC has developed eight (8) CE courses designed as 8 hour, on-line, and on-line testing for each.  Each curriculum is designed to meet current lender and CFPB compliance mandates.  A certificate of completion is issued upon completion of each CE course.

C.A.R.S. certified recovery agents who avail themselves to a RISC CE course will be recognized as C.A.R.S. Plus CE collateral recovery specialists on the RISC website.

The regular price of a CE course is $99.00.  However, in order to introduce C.A.R.S. certified recovery specialists to RISC CE courses, RISC is offering a 50% discount towards a CE course within 30 days of this announcement.

RISC CAN members will continue after the initial 30 days introduction discount, to receive their member’s discount of 15% ($14.85 total discount) off each Continuing Education program.

As we have stated, with current CFPB and lender compliance mandates along with the proliferation of Wrongful Repossession lawsuits it is critical for recovery agents to obtain and provide up to date professional credentials to their clients and prospective clients.

The C.A.R.S. National Certification Program was introduced to the recovery, insurance, and lending community in 1999 and is accepted and active in all 50 States and Puerto Rico. It is recognized as the industry standard as the premier certification of collateral recovery specialists.

We believe the C.A.R.S. Plus CE programs will continue to provide the training and professional credentials acceptable to the lending industry, further ensure public safety, and the safety of the recovery professional.

RISC is recognized within the collateral recovery industry as a leader in the fields of CFPB consumer protection training, risk management and industry standard compliance requirements.

RISC services include:  RISC Compliant Agent Network (CAN) membership, certification through the C.A.R.S. National Certification Program, C.A.R.S. Plus CE (continuing education courses), compliance vetting and training, office and storage facilities inspections, business consulting, repossession insurance consulting, lock-smith training and supplies, automotive key codes, discount programs, and a $1 million Client Protection Bond for members of the RISC Complaint Agent Network.

For more information, please e-mail RISC at [email protected], call 866-996-7472, or visit our website at www.RiscUS.com

Redwood City, Calif. — Extending its efforts to help automotive lenders efficiently select agents for asset recovery, Recovery Database Network (RDN) today announced that members of the Recovery Industry Services Company (RISC) Compliant Agent Network (CAN) will be identified within RDN’s recovery management software during the agent selection process.

“The RDN team understands that CFPB compliance is a key issue for lenders,” said Zach Hallowell, COO of RDN. “Being able to distinguish independently vetted recovery service providers is crucial for compliance efforts, and launches the asset recovery process toward a successful conclusion. We’re pleased to partner with RISC and offer lenders a way to select recovery agents in a more intelligent, discerning way.”

Established in 2009, RISC has quickly become a leader in the fields of risk management, recovery industry compliance standards and certification training. Recovery service providers that are members of RISC CAN have been qualified by RISC with a site inspection of the provider’s facility as well as background and bankruptcy checks. RISC CAN members are also certified for professional competency through the Certified Asset Recovery Specialist (C.A.R.S.) National Certification program. RISC’s Vendor Compliance Reporting (VCR) system continually monitors each member to ensure standards are maintained. In addition, RISC CAN members are covered by a $1 million Client Protection Bond.

RISC CAN Members will be tagged with a RISC CAN logo within RDN’s recovery management software on both the approved agent selection screen and the agent selection screen for new and reassigned cases. By clearly identifying RISC CAN members, RDN enables lenders to quickly identify certified recovery service providers.

“By highlighting RISC CAN members, RDN is helping its clients make a more informed choice during the agent selection process,” added Stamatis Ferarolis, President of RISC. “The peace of mind that comes with knowing that a recovery agent is fully compliant with the toughest industry standards is invaluable.” Ferarolis continued, “Agents that are members of RISC CAN reduce a lender’s liability exposure. That increases confidence in the overall recovery process and allows lenders to focus on the other important aspects of their business.”

For more information about RDN’s identification of RISC CAN members, please contact RDN at 817-204-0298, select option #2.

RDN is a provider of software and data solutions related to the recovery of assets for the automotive finance industry and is a subsidiary of OPENLANE, Inc. OPENLANE is a leading provider of online automotive auction platforms and is itself a subsidiary of KAR Auction Services, Inc.

Article by Jonathan L. Pompan

When it comes to the Consumer Financial Protection Bureau’s (“CFPB” or the “Bureau”) compliance expectations, it is important to separate myth from fact.These days, the CFPB is moving full-steam ahead on examining non-banks and banks, dozens at a time, and is not leaving any stone unturned for potential unfair, deceptive or abusive acts or practices in violation of the Consumer Financial Protection Act or other consumer financial laws that fall under its scope

Myth #1: Only large financial institutions are subject to CFPB supervision and examination.

No provider of consumer financial products and services, or their service providers, should assume they are beyond the reach of the CFPB.The CFPB can examine any entity, regardless of size, based on regulatory authority to supervise “risky” financial products and services that it believes are causing harm to consumers.This authority is in addition to the CFPB’s ability to supervise larger market participants in the debt collection, credit reporting, and student loan servicing markets, as well non-bank businesses in the private student loan, mortgage, and small dollar loan markets.(The CFPB also supervises banks with over $10 billion in assets).

Myth #2: An audit program is sufficient to catch non-compliance.

The CFPB expects a proactive approach to compliance. This means not only having a detailed audit program, but also a system for proactively preventing and detecting potential non-compliance with the law before a consumer harm occurs.

The CFPB examines: Board of Director and management oversight; compliance programs; consumer complaint responses; and compliance audits. In addition, the CFPB reviews such areas as operations, marketing and lead generation, third party relationships, internal controls, consumer interaction, information sharing and privacy, and payment processing.

Myth #3: The CFPB only cares about policies and procedures.

Wrong. The CFPB expects written policies and procedures that institutions will design and offer consumer financial products in accordance with federal consumer financial laws and maintain effective systems and controls to manage compliance responsibilities. This means the CFPB will focus both on policies and procedures and actual acts and practices, including consumer level transactions. The CFPB has released a comprehensive Supervision and Examination Manual, and several additional guidance documents and bulletins that shed light on all of the different ways their examiners oversee companies.

Myth #4: Companies are not responsible for the actions of their service providers.

As the CFPB stated in its Bulletin 2012-03, the CFPB expects non-banks and banks to “oversee their business relationships with their service providers in a manner that ensures compliance with Federal consumer financial law.” The CFPB considers a “service provider” to be “any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service.” For more information about the CFPB expectations for effective vendor management, see
“ CFPB Warns of Service Provider Scrutiny.”

Myth #5: The CFPB will give companies that are supervised and licensed by other regulators a pass.

Wrong. All of the CFPB administrative proceedings brought about by the CFPB to date have been against entities that were already regulated on the Federal or state level prior to the creation the Bureau. For example, the CFPB has entered into consent orders with several banks regulated by the OCC, and mortgage related providers regulated by states. In addition, the CFPB has brought lawsuits against licensed attorneys, debt relief providers, mortgage assistance relief service providers, and others. The Bureau also has stated it is in the process of investigating companies and service providers in virtually all consumer product and service markets.

The content of this article is intended to provide a general guide to the subject matter.Specialist advice should be sought about your specific circumstances.