Payment protection technologies are relatively new in the UK.
Typically they range from simple pre-programmed stand-alone starter interrupt devices (SIDs), to more sophisticated command and control GPS systems integrated with lenders' and dealers' back offices, designed to manage driver needs as well as lenders' interests.
The 'stand-alone' prompt payment solution, initially the only technology of its type available, requires the driver/borrower to enter a receipt code each month into a visible dash-mounted keypad which prevents the device from immobilising the vehicle. The borrower is supplied the code from the lender after having made the payment. If the driver fails to enter the code into the dash system, they are given a series of on-board visual alerts, typically a three day countdown clock, prior to the vehicle being automatically immobilised. This type of system has no GPS nor data connection and once fitted has no flexibility to be re-configured. Lenders need to be certain that any such solution fully conforms to UK consumer credit legislation which in this context requires a due process of notification.
As the initial market entrant in the UK, the 'stand-alone' prompt payment solution has gained some traction in the industry which is beginning to recognise the enormous potential benefits of changing the dynamics of the collection process in this way. But like many early technologies, it has paved the way for more advanced solutions.
The next generation solutions utilise 'connected' on-board tracking devices. These are GPS immobilisers securely fitted within the vehicle. When a driver defaults on their payment, after appropriate legal notice to the customer, the technology can remotely immobilise the vehicle. Using smart technology, a good 'next gen' solution can issue alerts when they detect the device is being tampered with, or if the vehicle is moving with low or no power (i.e. indicating it is being towed). A range of GPS devices is available in the UK, but lenders looking for a supplier should look at providers who control the whole 'end to end solution', from managing their own 'walled garden' secure wireless network to their own accredited fitters and managing the default notice issuance and notifications. By giving the responsibility for the whole process to a specialist provider, such as Global Telemetrics with their end-to-end VTSiM® solution, the lender is less exposed to any liability.
Telimob embodies all the essential functionality of the Next Gen solution but delivered in a "lighter" package, making it more affordable and providing 'plug and play' ease for dealers.
Telimob is packed with all the great features that come with a Global Telemetrics system - CRM, security features, etc - and provides the real-time location of a vehicle registered with the system and the facility for the creditor to immobilise the vehicle once appropriate notification procedures have been implemented.
To find out how payment protection technologies could work for you, download our White Paper on "The Need for Effective Prompt Payment Solutions in UK Subprime Vehicle Finance - A Perspective for Lenders"