The servicer of Tricolor loans in the wake of the auto group’s bankruptcy said it continues working to onboard borrower data for the 100,000 subprime auto loans.
In an update last week, Vervent stated it has been processing payments from customers without interruption since being appointed the trustee of Tricolor accounts Sept. 19 by a bankruptcy court.
“Our focus is on stabilizing operations and supporting borrowers who have been caught in a difficult situation,” said David Johnson, CEO of Vervent. “As of October 1, we onboarded borrower data and are handling account management. Call volumes remain elevated as consumers work through legitimate questions and concerns about their loans and vehicle titles. We’re addressing each consumer with the seriousness it deserves.”
Vervent was designated as the backup servicer for Tricolor by lenders and investors before the company’s collapse. Vervent reiterated that it is not involved in originating or servicing operations before the collapse in September.
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 stated it is focused on maintaining continuity for borrowers, complying with bankruptcy trustee rulings, and cooperating with all agencies throughout their investigation into Tricolor’s business practices.
As the appointed servicer, Vervent said its responsibilities include managing loan payments and account servicing, securing and transferring funds, assisting customers with loan payoffs, payment plans and insurance claims, and working with regulatory agencies to ensure compliance with all laws, rules, and regulations.
