New York, NY – 21 November 2017 – The growth in household debt can be attributed, at least in part, to the growth in auto loan balances, which have increased for 26 consecutive quarters as a result of new loan originations. In the aggregate, there are apprx. $435 billion worth of auto loans outstanding that were made to consumers with a credit score below 660.
In March of 2017, my 16 years of employment with the credit union I had been working for, came to an end. The writing had been on the wall for a while, so it was disappointing, but not a complete surprise. The only question was, what next?
Plan B – My 19 year career in collections and banking started from my experience and contacts I had made way back with National Auto Recovery Bureau in San Jose as a Manager, where I had spent 4 of my 7 years in the industry. Having closely followed the repossession industry for all of these years, I saw opportunity in the “Boom Town” of Silicon Valley where I reside.
So, before jumping into the fray, I started doing the numbers.
Kansas City, MO – 7 June 2017 – Jackson County Prosecutors charged a 30-year-old Kansas City man with harassment and making terroristic threats after police say he threatened employees and their families at Auto Bank KC, 6901 E. Front Street, when the business informed him they would have to repossess his vehicle if he didn’t catch up on payments.
The employee of Auto Bank KC who manages his vehicle loan says Robert Hill told her and another co-worker that he was going to burn down their houses, kill their families and kill them.
Borrower fraud in U.S. auto loans is surging, and may approach levels seen in mortgages during last decade’s housing bubble, according to a startup firm that helps lenders sniff out bogus borrowers. As many as 1 percent of U.S. car loan applications include some type of material misrepresentation, executives at data analytics firm Point Predictive estimated based on reports from banks, finance companies and others. Lenders’ losses from deception may double this year to $6 billion from 2015, the firm forecast.
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.
Dallas-based Santander Consumer USA Holdings Inc., one of the country’s biggest subprime auto lenders, has decided not to use GPS-tracking and ignition kill switch technology as regulators clamp down on the devices, an executive said.
Sales are showing signs of leveling off. When December figures come in Wednesday, they may be enough to eke out a seventh straight year of gains, edging past last year’s record of 17.5 million cars and trucks. But sales are expected to fall in 2017.
August 16, 2016 – Earlier this month, English HBO comedian and commentator took aim at the subprime auto industry with some accurate, but perhaps unobjective insights into the financing practices of some “Buy Here Pay Here” used car dealers.
Washington, DC – February 25, 2015 — Auto lender Santander Consumer USA agreed to pay at least $9.35 million for improperly repossessing more than 1,100 vehicles from active duty military service members, the Justice Department said Wednesday.
Milwaukee County, WI – February 12, 2013 – How much would time and money would you be willing to spend to fight a $2,300 judgment? Credit Acceptance Corp of Wisconsin apparently felt it was worth many thousands more to do so.