- (a) AATAFP will evaluate delinquent auto loans for potential repossession when the account reaches one hundred twenty (120) days past due, or earlier, if repayment is judged to be unlikely and the potential realized value of the sale exceeds the cost of repossession.
(b) Prior to repossession, AATAFP will review the account to:
- (1) Ensure there has been diligent collection activity in accordance with the collection procedure manual;
- (2) Evaluate the potential value of the repossession and liquidation sale compared to the expense incurred to AATAFP;
- (3) Determine if the reasons for nonpayment warrant an exception for loan modifications or discharge of debt; and
- (4) Determine if the repossession process should proceed.