-- Southwest Recovery Services has expanded its auto finance collection services to help lenders recover deficiency balances more effectively. This move comes as federal regulators increase oversight of the auto lending industry. Recent reports from the Consumer Financial Protection Bureau (CFPB) revealed several problems among auto loan servicers, including not refunding unearned premiums, applying payments incorrectly, and repossessing vehicles by mistake. These issues make it harder for lenders to collect the remaining balance after a repossession and raise the risk of compliance violations.
More information is available at https://www.swrecovery.com/industries/automotive-finance-collections/
Deficiency balances are the amount still owed after a repossessed vehicle is sold for less than the loan balance. Lenders must recover these amounts while following complex state rules and federal consumer protection laws. The CFPB has found that some servicers failed to refund add-on product fees, delayed transferring titles, and made other errors that can inflate the amount a borrower owes, increasing the chances of regulatory action and making the collections process more difficult for lenders.
With Americans owing more than $1.6 trillion in auto loan debt as of late 2025, accurate and compliant collections are more important than ever. Southwest Recovery Services (SWRS) offers lenders support through every stage of auto finance collections, including repossessions, charged-off accounts, and deficiency balance recovery. The company tailors its approach to each lender’s process and follows state-specific requirements, which vary widely across the country.
Operating on a contingency-based fee structure, SWRS ensures lenders pay only when collections succeed, reducing financial risk while maintaining oversight through an online portal that allows real-time monitoring of the collections process. Beyond collections, SWRS offers strategic consulting services to help lenders develop clear credit policies, train staff on compliance requirements, and streamline collections processes.
"It takes a unique skill set to recover deficiency balances," said an SWRS spokesperson. "Our team is experienced in handling potentially tense and challenging situations with poise and professionalism."
The company’s expanded services come at a time when regulators are increasing enforcement actions related to loan disclosures, add-on products, payment handling, and credit reporting. Unpaid deficiency balances can lead to legal action and long-lasting damage to a borrower’s credit. SWRS aims to help lenders recover these balances efficiently while maintaining strong borrower relationships and meeting regulatory expectations.
Southwest Recovery Services is a nationally recognized, ethical debt collection and financial services agency providing accounts receivable, revenue cycle management, and debt recovery solutions for businesses of all sizes across the U.S., with compliant operations and offices in multiple states.
Interested parties can learn more at https://www.swrecovery.com/about/learn-more/
Contact Info:
Name: Steven Dietz
Email: Send Email
Organization: Southwest Recovery Services
Address: 16200 Addison Road Suite 260 , Addison, Texas 75001, United States
Website: https://www.swrecovery.com/
Release ID: 89177954