Harvest Strategy Group, Inc.

Follow up to last week’s post re: Exeter’s first-time auto loan repossession rate plummeting from nearly 3,400 in Oct-2022 to less than 100 in Nov-2022, and remaining low ever since. Of 18 lenders with publicly offered auto loan asset-backed securities (ABS), this trend is unique to Exeter. What happened? Data reveals Exeter now has more churning in late-stage (3+ payments past due [PPD]) delinquency … more loan modifications … and more charge-offs without an associated repossession. 1) Repossessing vehicles of accounts 3 and 4 PPD practically ended, resulting in more loans flowing to 5 PPD … For example, 5 PPD share of late-stage delinquency increased from 3% in Oct-2022 to 12% by Sept-2024. And, the number of accounts churning in 5 PPD nearly quadrupled. 2) Account modifications swelled … For example, 70% of 3 PPD accounts were modified in the month they moved back to being current / 1 PPD … that percent climbed to 81% as of Sept-2024. 4) Repossessions as a percent of repossession + charge-offs without repossession decreased from around 40% to about 1% between late 2022 and Sept-2024. If you would like a deeper cut of the data, to see what you can uncover, send me a message and email address. Data source: Publicly offered auto loan ABS of 18 of U.S. largest auto lenders. Data used to create charts is comprised of over 25 million distinct auto loans over period covered.

Harvest Strategy Group, Inc. Holiday Jingle

Your legal collection efforts have been a crucial hedge against the economic impact on consumers’ ABILITY to pay. Now, as the Federal Reserve’s interest rate drop signals a shift in consumer WILLINGNESS and ABILITY to settle their debts, it’s time to turn potential to progress! The Harvest Strategy Group, Inc. agency network is the ultimate solution for navigating this new landscape. With a single point of contact, we provide deep expertise across diverse strategies, geographies and consumer asset classes, ensuring you’re fully prepared to capitalize on these changes to meet consumers where they prefer digitally. Our extensive network is equipped to engage consumers effectively, turning potential into recovery. Don’t miss out on this opportunity— Get in touch today to learn how Harvest can help you navigate this exciting new landscape! #HarvestStrategyGroup #DebtRecovery #InterestRates #DigitalCollections #Nearshore #Offshore Chris Miller

Harvest Strategy Group, Inc. is looking forward to seeing all of our strategic partners at National Creditors Bar Association NCBA Connect October 21-24 in New Orleans. Attending from Harvest - myself, Brad McCurnin Pete Klipa Cathy Fellabaum, Brian Hearn. If we aren't current scheduled to meet, contact me. https://lnkd.in/dZJg7syS

What To Do As Voluntary Payments Fall? Harvest Strategy Group, Inc. has seen a 53% decline in voluntary payments from their highs of 2021-2023. American consumers continue to struggle meeting financial obligations. They are being squeezed by low discretionary income, high interest rates and inflation in essential goods. As a result, traditional collection methods are increasingly ineffective. Contrary to what has occurred with voluntary payments, garnishment revenue has stayed relatively stable and consistent. Litigation has become a compelling recourse for creditors seeking to recover losses. By pursuing legal action, creditors secure revenue streams through “involuntary” mechanisms such as wage and bank garnishment, and property liens. Effective navigation of the legal landscape is crucial for successful debt recovery through litigation. This is not the first, nor will it be the last economic cycle through which Harvest has successfully advised and shepherded our clients. Effective litigation strategies provide stability and predictability in uncertain times. Contact us to learn more. jamie.welsh@harveststrategygroup.com

https://lnkd.in/gp-DbuqE Way to go, team!