American Credit Acceptance adds collectors as originations climb

Originations shot up 71% year over year at American Credit Acceptance, to $510 million last quarter, according to a presale report from Kroll Bond Rating Agency. The report details ACA’s latest securitization, a $302.8 million transaction slated to close Aug. 22. On the heels of its loan growth, ACA added 12 employees to its servicing […]

• Marcie Belles
• August 13, 2019
• Capital Markets, People, Risk Management

Goodbye dealership, hello digital: Why I sold my car online

From the August issue: When I first bought my 2014 Honda Civic two years ago in Dallas, I never thought I would sell it before I paid off my auto loan. My first, and only other, car was a 1996 Ford Mustang that I paid for in cash and subsequently drove into the ground. Life […]

• Joey Pizzolato
• August 12, 2019
• Customer Experience, Features, Innovation & Technology, Risk Management

NY dealership owners arrested for lender fraud

Two owners of a Central Valley, N.Y.-based used-car dealership have been arrested on charges of wire and bank fraud, according to a U.S. Attorney’s Office release. The father-and-son operators of Exclusive Motor Sports, Mehdi and Saaed Moslem, allegedly defrauded lenders by overstating their net worth in loan applications. The pair also understated income in their […]

• Joey Pizzolato
• August 9, 2019
• Compliance & Regulation, Risk Management

DOJ busts $30M luxury vehicle fraud scheme

A Wisconsin man has been sentenced to 10 years in prison after orchestrating a Ponzi scheme that racked up $30 million to finance the purchase of luxury cars, the Department of Justice announced this week. The perpetrator, Alex Golant, obtained the money from at least 40 different victims, according to the Eastern District of Wisconsin […]

• Nicole Casperson
• August 8, 2019
• Risk Management

Loose auto underwriting points to ‘weak’ credit outlook, Moody’s says

Lenders did little to tighten auto loan underwriting last quarter despite worsening delinquency trends. Last quarter, 3.5% of bank respondents in the Federal Reserve's Senior Loan Officer Opinion Survey reported to have somewhat tightened credit standards. The remaining 96.5% said standards remained basically unchanged. Given the "rapid rise in auto loan debt," however, banks would […]

• Bianca Chan
• August 7, 2019
• Credit Performance, Risk Management

Wholesale used-vehicle prices climb in July

July’s used-vehicle prices on the wholesale market increased 2.6% year over year, pushing the Manheim Used-Vehicle Value Index to 140.5. Comparatively, July 2018 saw an abnormal increase in both prices and sales volume due to tariff concerns, making comparison to last year “particularly tough,” the report notes. While July usually sees a 1% decline in […]

• Joey Pizzolato
• August 7, 2019
• Risk Management, Sales & Marketing

Florida AG cracks down on auto loan fraud

The Florida Attorney General’s office has announced a settlement with now-defunct Riverside Chevrolet and its former owner, Andrew Ferguson, for selling consumers vehicles with outstanding liens from August 2017 to April 2018. The settlement carries a price tag of $1.2 million, according to an agency release. “We are shifting into high gear to protect Florida […]

• Joey Pizzolato
• August 6, 2019
• Compliance & Regulation, Risk Management

NMAC settles DOJ suit over unlawful repos with $3M payment

Nissan Motor Acceptance Corp. has agreed to pay the Department of Justice $3 million following allegations that the captive violated the Servicemembers Civil Relief Act (SCRA), a law designed by the DOJ to ease financial burdens on servicemembers during periods of active military service.  The suit alleges that Franklin, Tenn.-based NMAC repossessed 113 vehicles owned […]

• Nicole Casperson
• August 2, 2019
• Compliance & Regulation, Risk Management