Subprime Auto Loan Losses Reach Highest Level since the Financial Crisis

Subprime net loss rate in auto bonds rose to 9.1% in January

U.S. subprime auto lenders are losing money on car loans at the highest rate since the aftermath of the 2008 financial crisis as more borrowers fall behind on payments, according to S&P Global Ratings.

Losses for the loans, annualized, were 9.1 percent in January from 8.5 percent in December and 7.9 percent in the first month of last year, S&P data released on Thursday show, based on car loans bundled into bonds. The rate is the worst since January 2010 and is largely driven by worsening recoveries after borrowers default, S&P said.

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Auto Loan Losses at Six Year High – Fitch Ratings


Banks’ loan losses from car financing have risen to a six-year high, new figures show, as the patchy labour market and the mining slump causes more borrowers to fall behind on their payments.

Fitch Ratings says the proportion of automobile loans that suffered a loss after lenders sought to repossess the vehicle rose to 0.62 per cent in the June quarter, the highest level since the index started in 2010.

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CU Recovery Employee Community Involvement Giving Back an Important Part of the Company Culture



Wyoming, MN – December 8, 2015 – Community can be defined as ‘a unified body of individuals sharing common attitudes, interests and goals.’ The staff of CU Recovery steps to the front of the line in their commitment to the local community. The company culture illustrates involvement from top management down through financial support and volunteerism. Since the company was founded, employees have been encouraged to participate in local events that benefit non-profits in their area.

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Measuring Collection Department Results Challenging the Status Quo


Wyoming, MN May 19, 2015.      Most companies apply performance measurements to evaluate their success at reaching targets, as well as their effectiveness in achieving key business objectives. Credit union collection departments also look at performance indicators to measure recoveries, delinquency levels, and the number of charge offs.  CU Recovery, the leading collection resource for credit unions, observes that when collection departments concentrate on metrics and averages, overall performance can be diminished. The company agrees, that while performance indicators are important factors, it has nonetheless reverse engineered the traditional mindset in order to establish a focus on collection call quality as a key factor in improving process and impacting financial results.

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Developing World-Class Debt Collectors


The science behind success? Training formulas that work

WYOMING, MN; March 6, 2013. The best debt recovery strategy includes a tool box filled with formulas that work, even when circumstances change. Industry experts at CU Recovery, the leading collection solution for credit unions, see the future of training trending towards establishing resources that are member- focused and dedicated to supplying collectors with the working knowledge and skills that are needed, when they are needed. And studies continue to show that workers learn best from one another, or from peers in the same industry. CU Recovery will be providing essential training and resources for tough collection challenges at their September CU Recovery Collection Academy.

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