Conversions & Fraud

Question 1

What is a conversion?

Answer 1

When you lose control of a vehicle and the unit has been converted to a customer’s personal use

Question 2

How do you know when you have a conversion?

Answer 2

• Vehicle has not returned
• Current date is past the last extension date on the contract
• Branch cannot contact renter
• Contract may or may not be behind on funds

Question 3

What 2 questions should you ask when the renter tells you that the rental has been stolen?

Answer 3

1. Did you file a police report?

2. Do you have the keys?

Question 4

What are the first, basic steps in a conversion?

Answer 4

1. Contact the Area Manager
2. Contact Risk Management
3. Start filling out the Missing Unit Checklist at your office

Question 5

What are the extra steps in attempting to locate a renter in a conversion?

Answer 5

Exhaust all options. This would include:

• Do a drive by of the renter’s addresses
• Contact references listed by the renter
• Contact the CC company for help locating the renter
• Contact the insurance company for help locating the renter
• Contact the body shop to see if they picked up their personal vehicle
• Contact chain of command or place of employment

Question 6

What steps do you take once a vehicle is converted?

Answer 6

1. Document the conversion and create a DX in 1.0
2. Fax the DX report, contract, qualification form, and missing unit checklist to RM
3. Contact RM to get a demand letter sent out and wait 3 business days once it has
4. Put the renter on DNR
5. With RM approval, close out the contract and report the vehicle stolen
6. Obtain a copy of the police report, officer’s name, badge number, phone number, and precinct number. Give this to RM
7. RM will activate the vehicle as stolen

Question 7

If the vehicle is not recovered within 30 days after the demand letter is sent out, what happens?

Answer 7

• Vehicle is pushed to the regional office

* Expense of vehicle hits your uninsured losses for the entire wholesale value of the vehicle

Question 8

Why are we reluctant to put potential conversions on the “hot sheet”?

Answer 8

The threat of false arrest, which is an unlimited liability financial exposure

Question 9

What do you do once your vehicle is recovered?

Answer 9

1. Let local authorities know, they will come to the branch to do a recovery report
2. Contact RM
3. RM will remove stolen status
4. If impounded, arrange to pick it up
5. Branch sits on car for 2 days while it is removed from the “hot sheet”
6. Send car to a different area in case keys were duplicated.

Question 10

If a conversion returns before being reported stolen, what does the branch do?

Answer 10

The branch can close the contract once the vehicle has been recovered

Question 11

How does a vehicle that has been stolen from the renter hit your branch?

Answer 11

If the renter has they keys: hits your reserves (DX)

if the renter does not have they keys: uninsured loss for the wholesale value of the vehicle

Question 12

What is the Group 45 repo policy?

Answer 12

• Drive by allowed during business hours only
• Must have 2 people in the car, one assistant manager or higher
• If the customer is outside and offers the keys, we can take the car
• DO NOT take the car against the customer’s will. If the customer is there or will not cooperate but you find the vehicle, call RM to have a REPO company get the car

Question 13

What is the difference between detectable and undetectable fraud?

Answer 13

Undetectable: we has no real way of knowing it was fraud. Hits your reserves
Detectable: We should have caught it. Hits your uninsured losses

Question 14

Why is it better for damage to hit your reserves than your uninsured losses?

Answer 14

Reserves are spread over 12 months, but uninsured losses hit immediately for the full value