Credit Acceptance extends credit facility

Subprime lender Credit Acceptance Corp. has extended the maturity of a secured line of credit facility with a commercial bank syndicate to June 22, 2022, according to a company release. The amount of the facility had been set to decrease to $315 million from $350 million this month, according to a 10-K filing with the […]

• Joey Pizzolato
• June 28, 2019
• Capital Markets

On The Radar: Lenders Eye 3 States Set to Intensify Oversight

From the March issue: Despite the regulatory sigh of relief provided last year by the rollback of the 2010 Dodd-Frank Act, stricter state regulations have auto lenders holding their breath. On the heels of a February 2018 call by Mick Mulvaney, former acting director of the Consumer Financial Protection Bureau, to let states more often […]

• Nicole Casperson
• March 26, 2019
• Compliance, Features, Operations, Risk

Credit Acceptance Issues $400M of Senior Notes

Credit Acceptance Corp. issued a private offering of $400 million of senior notes payable at 6.625% interest, according to a company release. The notes will mature in 2023. The company plans to use the proceeds for "general corporate purposes, which may include repayment of outstanding borrowings, if any, under our revolving credit facility," according to […]

• Joey Pizzolato
• March 15, 2019
• Capital Markets, Strategy

Credit Acceptance 2018 Profits Accelerate Despite State AG Investigations

Net income at Credit Acceptance Corp. shot up 20% year over year to $574 million in 2018 despite ongoing investigations by two state attorneys general. The lender filed a disclosure with the SEC last week meant to "provide an update on two state matters" that are related to investigations by Massachusetts and Mississippi state attorneys […]

• Nicole Casperson
• February 4, 2019
• Compliance, Earnings, Risk

Credit Acceptance 3Q Profits Accelerate Despite Downturn in Active Dealer Volume

Net income at Credit Acceptance Corp. shot up 50% year over year in the third quarter, though average volume per active dealer declined — 2.9% — for the first time in 2018, Chief Executive Brett Roberts said in an earnings call yesterday. “This quarter was down a little bit from the trend line, and volume […]

• Nicole Casperson
• October 30, 2018
• Earnings

Crediauto Restarts Subprime Originations With Tightened Scorecards, Auto Decisioning

Subprime lender Crediauto USA Financial LLC restarted originations earlier this year following a one-year break from funding loans to add auto-decisioning software, improve its credit underwriting standards, relaunch the brand, and refinance its outstanding debt, the company told Auto Finance News. Investment firm Arena Investors LP is providing Crediauto with a “multi-million” credit line to refinance […]

• William Hoffman
• August 29, 2018
• Credit Performance, Risk

Credit Acceptance Extends Revolving Period of Warehouse Facility

Credit Acceptance Corp. (CAC) announced on Thursday that it extended the revolving period and the maturity date of its warehouse facility, according to a company press release. CAC’s $100 million revolving secured warehouse facility revolving period was extended to August 2021. The last time the warehouse revolving period was extended was in August 2017 to […]

• Nicole Casperson
• August 16, 2018
• Capital Markets, Credit Performance

Expanded Salesforce, Growing Dealer Network Propels Credit Acceptance Profits in 2Q

Credit Acceptance Corp. has increased net cash flows 220% year over year in the second quarter but profits remain “very small” compared with what the company is hoping to project moving forward, Chief Financial Officer Ken Booth said during the earnings call. The subprime lender expects to collect $28.2 million from the loans it originated […]

• William Hoffman
• August 1, 2018
• Credit Performance, Earnings