Rising Delinquencies Dominate 2017’s Top Subprime Headlines

Despite the overall popularity of subprime, the sector has faced significant losses and increased fragmentation this year. While Credit Acceptance and Westlake Financial Services continue to express interest in subprime lending, Fitch Ratings found subprime ABS delinquencies have spiked to a 20-year high. Additionally, a stress test from S&P Global indicated a rise in both […]
  • Emma Sandler
  • December 26, 2017

Credit Acceptance is Served Subpoena From Mississippi AG

The subprime auto lender Credit Acceptance Corp. disclosed that it has received a subpoena from the Mississippi Attorney General for issues with the company’s origination and collection of loans.  The subpoena was issued on Aug. 14 and the company said it is cooperating with the inquiry, according to a Securities and Exchange Commission filing late last […]
  • William Hoffman
  • October 10, 2017

Credit Acceptance Expands Subprime Lending While Losses Spike

While some lenders in the subprime space are pulling back, Credit Acceptance Corp. continues to originate higher loan volumes, extend loan terms, and experience greater levels of default, according to the company’s second-quarter earnings report. The lender originated 77,317 loan contracts in the quarter, up from 76,520 contracts during the same quarter the year prior. […]
  • William Hoffman
  • August 2, 2017

Lenders See Regulatory Stability, CFPB Complaints Show

After years of retooling, investing, and stressing over the regulatory environment following passage of the Dodd Frank Act in 2010, an analysis of the Consumer Financial Protection Bureau’s complaint database is showing signs of stabilization. Yes, the overall number of complaints submitted to the bureau has risen — 7,185 last year, up from 5,921 in 2015 […]
  • William Hoffman
  • May 10, 2017

Credit Acceptance Grows Portfolio 23% in 1Q

Credit Acceptance Corp. grew its total portfolio outstanding to $4.4 billion in the first quarter — up 23.4% compared to the same period the year prior, the company disclosed in its latest earnings report. The subprime lender’s program is different than its competitors in the space. Dealers in the Credit Acceptance program submit loans for […]
  • William Hoffman
  • May 2, 2017

Pelican Restricts Repo Policy Amid Industry Concerns

Pelican Auto Finance LLC has changed two collection and repossession policies in the wake of increased attention from the Federal Trade Commission and Consumer Financial Protection Bureau, Joel Kennedy, the lender’s chief performance and compliance officer, told Auto Finance News. The use of GPS-enabled kill switches that can disable a car remotely, as well as […]
  • William Hoffman
  • April 10, 2017

DOJ Inspects BMW Financial Services’ Military Compliance

BMW Financial Services received a request for information from the U.S. Justice Department regarding the company’s leasing compliance, under the Servicemembers Civil Relief Act (SCRA), according to documents obtained by Bloomberg. The Justice Department sought the information in August and BMW doesn’t know how many leases could be affected by the law — which provides […]
  • William Hoffman
  • March 14, 2017

Kill Switches Expose Lenders to Regulatory Enforcement, Analyst Says

Lenders are likely running away from the use of kill switches right now because “you expose yourself to regulatory enforcement,” John Hecht, managing director of equity research and specialty finance at Jefferies LLC, told Auto Finance News. Westlake Financial Services, Credit Acceptance Corp. and DriveTime Automotive Group Inc. have all been tapped by the Federal […]
  • William Hoffman
  • March 10, 2017

Westlake’s Portfolio Grew 23% in 2016

Westlake Financial Services increased its portfolio to $3.59 billion, as of January 2017, a 23% year-over-year rise from $2.92 billion at the same time a year ago, according to a presale report from S&P Global released Monday. The company also grew its workforce to 1,467 employees, up from 1,370 at the same time a year prior, however […]
  • Larissa Padden
  • March 9, 2017

FTC Taps Westlake For Info on Auto Kill Switches

The Federal Trade Commission issued a civil investigative demand to Westlake Financial Services in November, seeking information about the use of kill switches used to remotely track and shut down the vehicles of delinquent borrowers, according to private bond-offering documents obtained by Bloomberg. Westlake is the third lender the agency has reached out to about […]
  • William Hoffman
  • March 7, 2017
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