Consumer Portfolio Services Leverages Informed.IQ’s Dealer Verify to Enhance Loan Processing, Increase Capture Rates, and Improve Dealer Experience
AI-Powered Tool Enables CPS Dealers to Verify Stipulations in Real Time, Streamlining Loan Originations and Reducing Contracts-in-Transit
LAS VEGAS, NV, Oct. 07, 2024 (GLOBE NEWSWIRE) -- (Nasdaq: CPSS) (“CPS” or the “Company”), a leader in providing indirect automobile financing to consumers, today announced the successful integration of Informed.IQ’s Dealer Verify tool into its loan origination process. This advanced AI-driven solution enhances the dealer experience by automatically verifying stipulations, improving capture rates, and reducing contracts-in-transit.
CPS has consistently focused on leveraging technology to enhance its operations across the subprime auto lending cycle. For years, CPS has utilized AI and machine learning to streamline its underwriting processes, improve risk management, and optimize dealer performance. The Company’s proprietary AI-driven models have enabled the approval of higher-quality loans, resulting in better credit performance, enhanced collections, and stronger portfolio growth.
With the integration of Dealer Verify, CPS is further expanding its use of AI to improve dealer efficiency. By automating the collection and real-time verification of key consumer stipulations—such as proof of income, bank account statements, and other necessary documents—Dealer Verify enables CPS dealers to process loans more quickly and accurately, reducing delays, minimizing fraud risk, and enhancing customer satisfaction.
Dealer Verify processes various document types and data sources, automating calculations, identifying omissions, and flagging potential fraud to ensure accurate decisions in real time. When dealers submit documents through CPS’s secure Dealer Verify portal, they receive immediate feedback, eliminating concerns about non-conforming stipulations or image quality issues. This allows any issues to be resolved quickly, ensuring all documents are verified quickly and ready before customers leave the dealership.
“By leveraging Dealer Verify, CPS dealers are now equipped with the tools to handle loan originations more efficiently,” said Mike Lavin, COO at Consumer Portfolio Services. “This technology allows us to provide a streamlined, frictionless experience to our dealers, ensuring deals are processed faster, with fewer errors, and with significantly less risk of contracts-in-transit.”
Teri Robinson, Executive Vice President of Sales and Originations of Consumer Portfolio Services added, “By leveraging AI, we have cut days in house from over three to under two. We have increased our same day funding percentage by 100% and second-day funding percentage by 50%. We can ensure that every loan is processed with maximum accuracy, giving our dealers confidence in their decisions and allowing us to continue delivering competitive-rate loans to all market segments.”
Looking ahead, CPS continues to expand its operations and invest in growth. With a growing network of over 12,000 approved dealerships across 47 states, CPS is scaling its team to support increasing demand, aiming to add more sales representatives by year-end. This expansion ensures CPS can continue to provide efficient, affordable financing options to more consumers while strengthening relationships with dealers nationwide.
About Consumer Portfolio Services:
Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.
About Informed.IQ:
Informed.IQ uses AI/ML to instantly verify income, assets, residence, insurance, and more, enabling real-time, reliable credit decisions. The company automates stipulation clearance with 99% accuracy in seconds, with no humans-in-the-loop, providing lenders and dealers a seamless experience. Informed has processed over $120 billion in loan originations to date, working with six of the top ten auto lenders in the U.S.
Company Contact
Danny Bharwani
Chief Financial Officer
949-753-6811
Investor Relations Contact
Tom Colton and Alec Wilson
Gateway Group, Inc.
949-574-3860
