After three years in the auto sector, BankLiberty is winding down its indirect lending business.
“The competition in the market was such that they thought it was in the best interest of the bank to discontinue operations,” Senior Vice President Dan Gutshall told Auto Finance News.
BankLiberty has a less-than-$20-million portfolio, and did business with about 25 dealers. The Kansas City, Mo.-based bank wrote its last indirect auto loan at the end of September, Gutshall said. It had five employees working in the space, two of whom were absorbed and three of whom were let go.
Gutshall said the bank will let the book of loans run off, a process he expects to take about four years. It will continue to operate in the direct loan space.
People with bad credit and no credit need transportation. The high interest paid by these borrowers is often less than current credit card fees. It is strange to me that the FTC cannot see the similarity. High risk lending penalizes the good payer as they subsidize the poor payer. It is not much different then healthcare wither. The uninsured cost Billions while the insured subsidize the care – but most people don’t get that either!