The Repossession Industry’s Power Struggle: Vendor Managers’ Reign of Influence

GUEST EDITORIAL

In the less visible corners of the repossession industry, a significant but often overlooked authority reigns: the vendor managers. These individuals, tasked with overseeing external contractors responsible for reclaiming assets, hold a sway that can be both vast and unchecked. However, recent revelations have brought to light a troubling trend: the unchecked authority and privileges of vendor managers, leading to ethical concerns and industry-wide imbalances.

One glaring issue is the prolonged tenure of vendor managers. Unlike industries that value turnover for fresh perspectives, vendor managers in auto finance companies often hold onto their positions for extended periods. This extended stay not only hampers innovation but also concentrates power, raising the risk of abuse and favoritism.

It’s crucial to consider several key questions: Have veteran vendor managers formed a tribunal, potentially engaging in price fixing with other long-standing colleagues? Are these managers violating non-disclosure agreements by sharing confidential information? Are they influencing the selection process for companies invited to participate? Is there evidence of a vendor management community tribunal stifling fair competition?

Furthermore, some vendor managers have ascended to quasi-celebrity status, detached from the industry’s realities. This culture fosters an unhealthy power dynamic and creates an environment ripe for ethical breaches.

Ethical lines blur further when vendor managers accept questionable gifts and perks. From lavish presents to extravagant outings, conferences in lavish locations, some indulge in a lifestyle of privilege and excess, raising concerns about corruption.

The abuse of power extends to select relationships with contracted firms, with vendor managers often favoring their own connections that bring them personal gain over longstanding productive partnerships. This practice undermines trust and perpetuates nepotism and cronyism, eroding client-agent relationships. Gone are the days where tenure and loyalty were unquestionably valued above all else, replaced by favoritism and self-interest.

Unchecked vendor manager power has multifaceted consequences, breeding resentment among external contractors and allowing unethical behavior to flourish, ultimately stifling innovation and progress.

Addressing these issues necessitates collaboration between industry stakeholders and auto finance company leaders that are often shielded from the challenges within the auto finance industry by vendor managers. Implementing stricter oversight mechanisms, enforcing anti-bribery policies, and prioritizing transparency in vendor management practices are vital steps toward curbing abuses of power within the repossession sector.

In conclusion, the unchecked power of vendor managers in the repossession industry is a ticking time bomb, threatening the integrity and stability of the entire ecosystem. By shining a light on these issues and taking decisive action to curb abuses, stakeholders can pave the way for a more ethical, equitable, and sustainable repossession industry.

Anonymous

PUBLISHERS NOTE: Anonymous editorials are only allowed when no person, company or association is called out by name. While the allegations made above are those of the writer, anyone who has been in this industry long enough has seen examples of what can by the reasonable observer be perceived as unethical behavior by vendors of all types and lenders of many sizes. It’s not always the vendors making offers, vendor managers have been known to make demands of their own.

While most hands are clean, many are not. This is not a new issue; it has been like this for most of the history of the repossession industry. It is all the same, unethical and possibly illegal in some cases.

Kevin Armstrong

Publisher