As of October 2026, TSI’s Accounts Receivable Management (ARM) service collects deficiency balances after repossession and sale, lease-end charges and charged-off installment and personal loans for auto finance companies and consumer lenders. It works in your name before charge-off and in TSI’s name after, with settlements and payment plans inside limits you set.
Got a letter or call from TSI about your own account? Go to the Consumer Support Hub
Where the loss sits now
Collateral is covering less of each bad loan. Fitch’s subprime auto recovery index ended 2025 at 32.64%, against a pre-pandemic average of 43.73%, and its 60-day delinquency index hit a record 6.90% in January 2026 (Fitch Ratings, via Auto Remarketing, May 2026).
So the deficiency carries more of the loss. And deficiency accounts are hard ones: the borrower has lost the car, often moved, and may dispute the sale price.
"We can't find half of them"
Borrowers who lose a vehicle change addresses and phone numbers. An agency that stops at the first skip trace returns the account untouched.
"One bad notice and the balance is gone"
A deficiency claim depends on the repossession and sale paperwork. If the file is thin, the collector is the one who finds out.
"Our agencies all quote the same rate"
The fee is the smallest number in the deal. What you net after fees, disputes and complaints is the number that matters.
How TSI works your accounts
- Check the file before the first contact
TSI loads your placement file, scrubs for bankruptcy and deceased borrowers, and confirms the account carries what a deficiency claim needs, such as the sale date, proceeds and the explanation you sent. - Find the borrower
A skip-tracing waterfall runs through several data sources, then refreshes on accounts that stay uncontacted. Address changes are checked against the National Change of Address file. - Contact on your terms
Collectors call, write, email and text inside the Regulation F limits and your own rules. Payment plans and settlements stay within the matrix you approve, and borrowers can pay online, by phone or by mail. - Handle disputes as records
A dispute about the sale price or balance pauses collection while TSI gets documents from you and answers in writing. - Escalate only with your approval
Accounts that qualify and that you approve go to a law firm in TSI’s managed attorney network. Credit bureau reporting happens only when you direct it.
TSI services that fit auto and consumer lenders
First-party collections
Calls and letters in your name before charge-off, for lenders that want to keep the borrower relationship. First-party collections
Third-party collections
Deficiency balances, lease-end charges and charged-off loans worked in TSI’s name across placements.
Legal recovery
Suits on accounts you approve, through law firms TSI manages.
Demand letters
Written demands and reminders on a schedule you set.
Card, overdraft and retail credit portfolios are covered on collections for banks and lenders.
Rules that shape deficiency collection
Before a lender can collect a consumer deficiency, state law under UCC Article 9 sets the paperwork. Section 9-616 requires the secured party to send the borrower an explanation of how the deficiency was calculated, before or when it first makes written demand for the deficiency, or within 14 days after a request.
Servicemembers get extra protection. The Servicemembers Civil Relief Act bars repossession without a court order for contracts signed before military service (50 U.S.C. 3952), so a deficiency from a repossession that skipped that step carries risk.
Once TSI collects in its own name, the Fair Debt Collection Practices Act and Regulation F apply, including the Regulation F call limits. TSI is licensed or registered in every state that requires it and authorized to collect in all 50 states, DC and Puerto Rico (NMLS ID 950422).
TSI doesn’t repossess vehicles, run auctions or buy charged-off accounts. If you’re weighing a debt sale instead, the sell-or-place calculator compares a buyer’s bid with placement at present value. Collateral recovery stays with you and your repossession vendors. TSI works the balance that’s left.
Frequently asked questions
Does TSI collect auto deficiency balances?
Yes. TSI collects deficiency balances after repossession and sale, and lease-end charges such as excess wear and mileage.
Can TSI work our accounts before charge-off?
Yes. First-party collectors work in your name and scripts, and borrowers pay you directly.
What do you need from us to collect a deficiency?
The account file, plus the repossession and sale records: the disposition notice, sale date and proceeds, and the deficiency explanation you sent the borrower.
How should we compare auto collection agencies?
Place matched segments with each agency and compare net recovery after fees, disputes and complaints.
Test TSI on one segment of your deficiency book
The Recovery Performance Diagnostic sets baseline economics on one portfolio or placement tier, reviews contact strategy and complaints, and designs a carve-out you can measure.
General information, current as of October 27, 2026. It isn’t legal advice. Rules change and differ by state, so check the sources linked here and talk to your own counsel before you act on it.