Lender Compliance Technologies (LCT), the company that specializes in compliance solutions for automotive, RV, marine, and powersports lenders, has raised $4.15 million in a Series A funding round, with Automotive Ventures. The round was led by a team of seasoned software entrepreneurs and joined by Automotive Ventures and Driven Capital Partners for the ongoing development of technology solutions to help lenders mitigate regulatory risks.
This announcement comes on the heels of the launch of LCT’s Refund Control™, a lender-controlled compliance solution for F&I product cancellations and refunds, and the close of Automotive Ventures Fund I, an inaugural venture fund created by Automotive Ventures to support early-stage automotive technology companies.
“Banks, credit unions, and finance companies face increasingly stringent controls today,” said Steve Greenfield, founder and CEO of Automotive Ventures. “Consumer F&I product cancellations and credits are tedious and if handled improperly, expose lenders to hefty fines and damaged reputations. Automotive Ventures, along with a syndicate of software entrepreneurs and Driven Capital Partners, invested in LCT because the company’s robust platform provides end-to-end services to simplify, automate, and streamline this process. With nearly 40 million F&I products purchased by consumers each year, the market is huge and the risks are significant. LCT helps mitigate these risks for lenders.”
Lender Compliance Technology’s flagship product, Refund Control, was introduced in April of this year and is currently in the pre-sales phase, with official U.S. rollout scheduled in just a few short weeks. Glenn Munro, President of LCT and a 20+-year financial services industry veteran, says this is just the beginning of technology-driven solutions to help lenders remain compliant across various aspects of their business.
“There has never been a more important time for lenders to successfully manage and navigate the many consumer regulations they face,” said Munro. “Vehicle industries are challenged in the wake of the pandemic and lending professionals need every available resource to mitigate risk. This funding from our trusted investment partners enables us to develop a full compliance roadmap and accompanying software solutions. Our ultimate goal is to help lenders provide their industry clients and vehicle consumers with an unparalleled level of service that meets regulatory requirements at every turn.”