In the fallout of the recent Tricolor bankruptcy filing, its backup servicer has been appointed to step in to service the firm’s 100,000 subprime auto loans.
Vervent, a California fintech company, will be managing loan payments and account servicing, securing and transferring funds, handling vehicle inventory, assisting customers with loan payoffs and claims, and working with regulatory agencies to ensure compliance with laws and rules.
“Our top priority is making sure borrowers are treated in a fair and transparent manner,” said David Johnson, CEO of Vervent, in a press release. “We know how disruptive it can be when access to vehicle information and loan servicing is suddenly lost. Our team is working quickly and carefully to restore normal operations and provide clear communication throughout the transition.”
Vervent said loan terms and payment obligations will remain the same.
Tricolor, based in Dallas, filed for bankruptcy Sept. 10. Tricolor and its affiliate Ganas Auto Group, operated 65 retail centers in Texas, California, Nevada, Arizona, New Mexico and Illinois. The company sold vehicles and serviced loans for individuals with limited or no credit history, including the Hispanic community.
Tricolor has posted on its website, “We are no longer offering financing or sales services. If you are an existing customer, please continue making your payments as usual.”
Vervent said in its release that it is working closely with Wilmington Trust and JPMorgan Chase Bank to facilitate the court-supervised transfer of servicing.
