Wednesday, July 01, 2009 - Posted by Philip Harvey
We have recently had 2 different examples where the security of a loan has been jeopardised and our ability to repossess the security has been limited through REVS listings not being performed in a timely manner.
The scenarios were:
- REVS Listing placed 4 hours after the finance was providedIn this case example, a debtor applied for a secured car loan. The loan was granted on the basis of the security. When the funds were then provided to the debtor, the interest in the motor vehicle was not immediately listed on REVS. The listing was placed some 4-5 hours after the debtor had already received the funds, and driven the motor vehicle off the dealers lot.
The debtor then proceeded to drive the motor vehicle down the road to another car dealer & immediately sold the vehicle. When the 2nd dealer completed the REVS check, there were no interests noted on the motor vehicle.
Subsequently, payments on the loan were defaulted.
We were not able to effect repossession of the motor vehicle under the above circumstances, with clear title being received by the 2nd dealer by means of a REVS check. Without going into the fraudulent activity in this example, subsequent collection of the loan to mitigate any loss is more difficult without being able to realise sale proceeds from the motor vehicle.
To avoid this problem, we suggest that as part of a checklist before the funds are released, that you register your interest on REVS.
- A REVS listing lapsed before it is renewed.
The financial provider had provided a secured loan to a debtor and listed their interest in the security on REVS. Repayments were being met for a long period of time. The interest in the security on REVS lapsed, and was not renewed by the financial provider for 7 days.
During this period where the interest was not noted on REVS, the security was sold / transferred to an associate of the debtor & payments were subsequently defaulted.
We were unable to effect repossession as the new owner was able to produce a REVS check showing clear title to the security.
It is therefore important to ensure that your listing with REVS is current & does not lapse