28 June 2018

Malcolm Poslinsky from the Equifax-owned PPSR specialist business, EDX, was asked by an equipment finance company to review their entire list of 5,000 PPS registrations. What we found was more than 2,000 records had errors that invalidated their registrations, including using the wrong grantor identifying information.

 

 

These registrations errors, many of which were avoidable, meant the company suffered significant financial losses whenever a customer went bust.

How did EDX assist?

We did an Assurance Review, which ran a fine-tooth comb over their existing PPS registrations. Our report included recommendations for policy and procedural improvements to protect their security issues. The client took our analysis on board and attempted to fix the problems by themselves, one registration at a time.

They continued to do the PPS registrations themselves, and a couple of years later called us back in to repeat the Assurance Review. The error rate had improved, but there were still around 1,700 potentially invalid registrations.

We suggested that the company review the issues identified in the analysis and bulk remediate – excluding the low value, low-risk accounts to save on cost. We also recommended they draw a line in the sand and adopt our registration software solution, ESIS, to ensure new registrations were loaded correctly.

As part of the review, we identified opportunities to cut costs relating to the duration of registrations and number of listings for each customer.

What was the outcome?

The company moved on to ESIS right away and couldn’t be happier. They are now processing the remediation files as they resolve the issues and matching them to internal records.

Bottom line

Our equipment finance client realised the cost of a rejected claim by an insolvency practitioner far exceeds the cost of getting their PPS registrations right in the first place.

For further information, or to speak to a PPSR specialist, simply email us . An Equifax Account Manager will be in touch with you to discuss your PPSR requirements

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.