A Colleyville firm that created technology to simplify the vehicle lender refund process is getting $4.15 million in growth funding.
Lender Compliance Technologies received the investment — its first funding round — from Automotive Ventures and Driven Capital Partners.
Through the company’s flagship Refund Control product, lenders serving the automotive, RV, marine and powersports markets are able to submit cancellations to dealers and providers simultaneously and access refunds to be given to customers. Cancellations can occur when there are early payoffs from a lender, vehicle repossessions or unprocessed insurance losses.
“There has never been a more important time for lenders to successfully manage and navigate the many consumer regulations they face,” Glenn Munro, president of Lender Compliance Technologies, said in a statement.
The company’s product gives lenders the power to protect themselves against potential consumer protection law violations.
Steve Greenfield, founder and CEO of Atlanta-based Automotive Ventures, said consumers buy nearly 40 million finance and insurance products annually.
“The market is huge and the risks are significant,” he said. “Consumer F&I product cancellations and credits are tedious and if handled improperly, expose lenders to hefty fines and damaged reputations.”
Greenfield said he sees the company’s technology as providing “services to simplify, automate and streamline this process.”
Tim Gill, a Lender Compliance Technologies board member, said the company works to make sure all parties are “made whole” in the process.
“It’s about the bank, it’s about the consumer, most importantly, and it’s about the stakeholders,” Gill said.
Greenfield’s firm has invested in nine companies from its recently closed $7.3 million fund to support early-stage automotive technology companies.
“We should be able to get a really good return on the investment [in Lender Compliance Technologies],” Greenfield said.