Tracking and Monitoring Equipment with CLEAR
In 2016, the Consumer Household Equipment Rental Providers Association Incorporated (CHERPA Inc.) approached Compuscan to develop an equipment register, to serve the needs of their member providers. CHERPA is Australia’s peak body representing the interests of the household goods rental industry in the country.
As a result, Compuscan Australia created a unique solution called the Consumer Lease Equipment Assessment Register, or CLEAR. Using our superior technology and information, we are able to assist Australia’s household equipment rental market via our online user interface. The main objective of CLEAR is to track and monitor rented equipment in this sector, and is available as a product to equipment rental providers, pawn brokers, the police, and even online portals such as eBay.
When a rental provider enquires about the equipment of a consumer, CLEAR provides up-to-date information as to whether the equipment is still under a rental contract. To do this, the make, model and serial number of the equipment is entered into CLEAR. If the enquiry results in a ‘hit’, that specific piece of equipment is still under contract, and the contact details of the consumer are displayed to the rental provider. Personal information is not given, as per Australia’s privacy laws.
After CLEAR was successfully rolled out in Australia, it became clear that the equipment rental industry needed a system that could provide real-time information on applications and acceptance of rental contracts by consumers. To reduce credit risk and to practice responsible lending, it is essential to provide real-time information to this sector. As such, the CLEAR system has been developed further, in order to track and assess the financial exposure related to consumer rental agreements.
Now, consumer applications for rental equipment are registered on the system at the time of their application. This results in a Pending status, associated with that particular individual’s application being registered with Compuscan.
Once the application has gone through the financial assessment process, the Pending status on the CLEAR system is updated with one of the following indicators:
Once a ‘Funded’ status is indicated on the CLEAR system, the rental provider is required to supply the applicant with the amount contractually agreed on to be paid fortnightly, as well as the total amount as per the contractual agreement.
By following this process, rental providers have immediate insight into the consumer’s financial commitments, as they pertain to equipment rentals. This results in the rental provider being able to accurately assess financial risk, as well as underpins responsible lending practice, as mentioned earlier.
Accurate and informed equipment rental decisions are possible when the CLEAR system is applied universally across the equipment rental sector, and when rental providers update the system in a disciplined manner. The results of this breakthrough product include faster application processing times, a decrease in bad debts, as well as an increase in the take-up of applications.