Lender Compliance Technologies (LCT), which offers a platform for automotive finance compliance and aftermarket product cancellations, announced a partnership with aftermarket product refund experts Blue Elk Advisors.

LCT and Blue Elk Advisors highlighted the partnership is geared to offer auto finance companies technology and operational approaches for mitigating risk and increasing efficiency when cancelling and refunding voluntary protection products (VPP) such as guaranteed asset protection (GAP).

“With regulators putting lenders under the microscope on their VPP cancellation and refund practices, lenders must create better processes and controls to meet expectations. While LCT provides the best system to facilitate a VPP cancellation and refund process, Blue Elk Advisors can help lenders create a custom-tailored process to meet their compliance needs,” LCT head of sales Tyler Gray said.

The Consumer Financial Protection Bureau recently released an addition to its supervisory highlights that included discussion about ancillary product refunds.

According to Blue Elk Advisors co-founder and managing partner Mike Chalmers, the newly founded consulting firm brings real-world finance company experience to aftermarket compliance.

Its team of experts has designed refund processes and solutions for multiple finance companies over the last eight years and participated in multiple state and federal examinations.

“As more states pass legislation regarding ancillary product cancellations, lenders are challenged to implement processes that were not previously required,” Chalmers said. “Until now, there has been no resource with the operational expertise to guide lenders through the design and execution process.

“Blue Elk Advisors is that resource and has the knowledge to assist lenders of any size reduce compliance risk and improve consumer treatment,” Chalmers went on to say.