06/16/2026
While much of the conversation around AI focuses on innovation and efficiency, one session at NAF 2026 highlighted an equally important topic: Compliance.
According to Megg Nicholls and Mark Metery of *__Hudson Cook, LLP__*, during the session "AI and Compliance โ The Must Dos, Should Dos, and Do Nots," AI can drive significant efficiencies and innovation, but it must be supported by proper governance, transparency, and oversight. As more organizations adopt AI-powered tools, ensuring those solutions align with regulatory expectations and company policies is becoming increasingly important.
The conversation around AI is no longer just about what technology can do it's also about how it's implemented and managed responsibly.
At RepoSystems, we recognize the importance of balancing innovation with accountability by helping our clients:
โข๐๐ถ๐ฐ๐ฒ๐ป๐๐ถ๐ป๐ด & ๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ ๐ฉ๐ฒ๐ฟ๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป- Before any vendor is activated or assigned work, the compliance team verifies that all required state and local licenses are current and that adequate insurance coverage is in place. This protects lenders from liability exposure that could arise from working with unlicensed or under insured recovery agents. Verification is not a one-time step the team monitors renewals and flags any lapses, ensuring continuous compliance throughout the vendor relationship.
โข๐ข๐ป๐ด๐ผ๐ถ๐ป๐ด ๐ฉ๐ฒ๐ป๐ฑ๐ผ๐ฟ ๐๐ฐ๐ฐ๐ผ๐๐ป๐๐ฎ๐ฏ๐ถ๐น๐ถ๐๐- Beyond initial onboarding, the compliance team maintains an active oversight role by monitoring vendor status and ensuring that credentials remain valid over time. This creates a living compliance record for each recovery partner, giving lenders and forwarders documented assurance that their vendor network meets required standards at all times.
โข๐ง๐ฟ๐ฎ๐ถ๐ป๐ถ๐ป๐ด & ๐ฆ๐๐ฎ๐ป๐ฑ๐ฎ๐ฟ๐ฑ๐ ๐๐ป๐ณ๐ผ๐ฟ๐ฐ๐ฒ๐บ๐ฒ๐ป๐- The compliance team provides training to recovery partners to ensure they are aligned with lender guidelines, industry regulations, and consumer protection requirements. This ongoing education component keeps vendors current on regulatory changes, proper repossession procedures, and documentation expectations all of which directly support lender accountability obligations.
As the industry continues to evolve, the most successful organizations will be those that balance innovation with accountability, build trust, and embrace new technology responsibly.
How is your organization approaching AI governance and compliance?
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