Credit Union Direct Lending, an indirect and point-of-purchase auto lending solutions CUSO, has entered into an agreement with PAR North America to help credit unions advance their vehicle recovery efforts and processes. As a result of the agreement, CUDL will be able to offer PAR's automotive asset recovery solutions-including repossession, skip trace and title services-to its credit union partners. These services will complement the asset disposition solutions CUDL already offers through similar alliances with GE Capital and Manheim.
"We did a strategic alignment agreement," said Jerry Neemann, executive vice president and chief sales officer of CUDL. "Basically, about six to eight years ago, we started working a lot with Manheim, a large auction exchange. We were going through an education process about how auctions can help credit unions. Last year we recognized a lot of car sales, and a lot of good things happening. We wanted to help the credit unions by offering a marketing solution. We went out there and signed with GE; they do a lot of business at the auction. We've been taking the same approach with credit unions-helping them when they have a repossession though auction to get more money."
Since CUDL had been receiving a lot of requests from credit unions for repossession solutions, it began to look for ways to help.
"We were looking for best breed in resolutions and PAR also do title services," Neemann said. "We now have three different companies that are all integrated so a credit union can go online at time of repossession. PAR Marketing is playing their role as far as repossession. We believe they would have a great degree in expertise in that arena."
Out of the 75 to 80 credit unions that were already signed on with GE and Manheim, more than half of them were looking for this type of offer, Neemann said, so CUDL is now in the process of going back to those credit unions and letting them know of the new service.
"Our investment is our time," Neemann explained. "As a credit union-owned CUSO, our time is to help our credit unions. It's not coming from a business perspective. It's about bringing solutions that are best to the credit unions. Its not really ROI-driven. Its more of a services model."
The new agreement does not bring additional work for CUDL, as the credit union works directly with GE, Manheim or PAR.
"CUDL is more of a facilitator for services," Neemann said. "CUDL is not actually within the process. The credit unions will have original arrangement with these organizations themselves. This is about the credit union, about having solutions that are best for the credit union. By leveraging the entities together we will really benefit the credit union to best degree."
Although credit unions can contact these companies on their own, by going through CUDL they receive the benefit of reduced pricing.