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Industry News

  • Flagship Credit Acceptance Settles $4M TCPA Claim
    by Joey Pizzolato on March 22, 2019 at 5:11 pm

    Flagship Credit Acceptance LLC has agreed to a $4 million class-action settlement against allegations that the subprime lender violated the Telephone Consumer Protection Act by “calling individuals on cellular telephones using an automatic telephone dialing system and/or a prerecorded voice,” according to a court filing. Chadds Ford, Pa.-based Flagship “strongly disputes” that the calls were […]

  • Westlake Calls on Dealers to Use Automated Payoff...
    by Bianca Chan on March 22, 2019 at 4:41 pm

    Westlake Financial Services is on pace to have about 10% of its payoffs transacted with Dealertrack's automated payoff and title release platform — its most successful month since signing up for the tool in November 2018, said company Senior Vice President of Sales and Marketing Mark Vazquez. This month is likely to be the lender’s […]

  • AFSA Provides Input on Cybersecurity to Key...
    by American Financial Services Association on March 22, 2019 at 4:37 pm

    Last month, the Senate Committee on Banking, Housing and Urban Affairs asked for feedback on the consumer finance industry’s views on cybersecurity, especially the collection, use and protection of sensitive financial information. “Given the exponential growth and use of data, and corresponding data breaches, it is worth examining how the Fair Credit Reporting Act should work in a […]

  • Trump Wants European Autos BMW, Mercedes to Be...
    by Bloomberg News on March 22, 2019 at 1:28 pm

    President Trump has given European auto manufacturers a way to avoid an escalation of the trade war, saying they can avoid tariffs on cars if they build more plants in the U.S. “They have BMW, they have Mercedes, they have a lot of very good cars that come in,” he said in an interview with […]

  • BMW Financial Ties Up Partnerships With Fintech...
    by Nicole Casperson on March 21, 2019 at 2:30 pm

    BMW Financial Services is hammering out partnership details with a few of the six startups that participated in its “CollaborationLab” program late last year, President and Chief Executive Ian Smith told Auto Finance News. “We prioritized a couple of the partnerships, and those are in dialogue as we speak,” Smith said without specifying which had […]

  • Powell Signals Prolonged Fed Pause as Inflation...
    by Bloomberg News on March 21, 2019 at 2:08 pm

    Federal Reserve Chairman Jerome Powell said interest rates could be on hold for “some time” as global risks weigh on the economic outlook and inflation remains muted. “We don’t see data coming in that suggest that we should move in either direction. They suggest that we should remain patient and let the situation clarify itself […]

  • Auto Finance Innovation Summit Delves Into...
    by Nicole Casperson on March 21, 2019 at 1:10 pm

    Nagesh Jaladi, vice president of applied predictive technologies at Mastercard, has joined the speaker faculty at Auto Finance Innovation Summit to share how lenders can successfully leverage and evolve analytic capabilities. Jaladi will offer insights into how captive and non-captive lenders are innovating through analytics, best practices for overcoming organizational and operational constraints to try […]

  • Why the Auto Finance Industry Needs a Greater...
    by JJ Hornblass on March 20, 2019 at 2:32 pm

    Most sales and marketing job ads go something like this: As an Inside Sales Relationship Manager, you will be contacting Auto Dealerships to sign up with AUTO FINANCE COMPANY NAME HERE as one of their sub-prime lenders. … The expectations for the first year at this job is to be making $60k – $100k per […]

  • PenFed to Expand Indirect Lending Footprint Into...
    by Bianca Chan on March 20, 2019 at 2:28 pm

    Pentagon Federal Credit Union has set its sight on expanding its indirect lending program into four new states, said Ivan McBride, vice president of automotive lending products and sales. PenFed plans to debut the program in Texas and Oregon this year, with Washington and Tennessee queued up for 2020. The credit union uses CU Direct […]

  • Dealership Financing Slips as Customers Prefer...
    by Bianca Chan on March 20, 2019 at 1:00 pm

    Consumers are increasingly opting to skip the dealership when it comes to getting their next auto loan, according to fresh data from Fico. Published last week, Fico’s 2019 U.S. Consumer Survey of Vehicle Finance Perceptions examined how consumers looked at the financing of their vehicle purchases and how auto finance companies are currently meeting their […]

  • Sierra Auto Finance Unloads Servicing Portfolio
    by Joey Pizzolato on March 19, 2019 at 5:05 pm

    Sierra Auto Finance transferred servicing of its portfolios to First Investors Financial Services on March 2, seven months after the subprime lender put a pause on new originations due to “unfavorable market conditions.” Sierra, founded in 2012, had $144 million of outstanding receivables at yearend 2018, down from $185 million in July 2018, according to […]

  • State Regulators Step Up to Post-Cordray Era...
    by Kelly Lipinski on March 19, 2019 at 4:30 pm

    Much has been reported on changes at the Consumer Financial Protection Bureau after new leadership took the helm a little over a year ago. We have watched the evolution of the agency’s enforcement posture, the repeal of its 2013 indirect auto fair lending bulletin, and an overhaul to its rulemaking agenda. The auto finance industry is not the […]

  • Veros Credit Turns to Machine-Learning Fraud...
    by Joey Pizzolato on March 19, 2019 at 2:44 pm

    In an effort to combat fraud, Veros Credit has adopted PointPredictive’s machine-learning fraud scoring solution, Auto Fraud Manager. The onboarding process — which typically lasts anywhere from three to six months, depending on the lender — was completed earlier last week. “We do a lot of work to educate lenders on the problem of misrepresentation […]

  • Bank of America, HCA Join Speaker Faculty at Auto...
    by Nicole Casperson on March 18, 2019 at 5:33 pm

    Two distinguished executives from Bank of America and Hyundai Capital America are set to discuss tips for synchronizing lending options and promoting them to consumers at the inaugural Auto Finance Sales & Marketing Summit during a session entitled “Blurring the Lines Between Direct and Indirect.” The discussion will take place on Monday, May 13, at […]

  • Proposed FTC Amendments May Impede Lenders’ Use...
    by Bianca Chan on March 18, 2019 at 2:00 pm

    Proposed Federal Trade Commission amendments to a rule governing consumer data protection “could significantly affect the activities and contracting process” between lenders and lead aggregators, said Quyen Truong, a partner at Stroock & Stroock & Lavan. If the amendments are implemented, lenders will need to ensure that aggregators — which fall into the category of […]

  • How Staying Compliant Improves Customer Experience
    by Lynn Hess on March 18, 2019 at 1:00 pm

    There are many good reasons for a financial institution to comply with current lending regulations. Nobody wants to pay hundreds of thousands of dollars in fines or earn a reputation as someone who takes advantage of consumers. Not least of all, good lenders feel an ethical obligation to follow the law and treat customers fairly, […]

  • Retouching Operations: Bank of the West Adds to...
    by Bianca Chan on March 15, 2019 at 3:12 pm

    From the March issue: Despite a recent industrywide rise in auto loan delinquencies, one legacy prime lender is expanding its product set to satisfy dealer partners. “We needed to reinvent our business model,” Bank of the West Executive Vice President of Personal Finance Michael Pereira told Auto Finance News. “Bank of the West has a […]

  • Credit Acceptance Issues $400M of Senior Notes
    by Joey Pizzolato on March 15, 2019 at 2:27 pm

    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 […]

  • P2P Digital Marketplace Targets Florida...
    by Nicole Casperson on March 15, 2019 at 1:00 pm

    Online buy-sell platform Tred plans to launch in Florida next quarter, on the heels of its February expansion into four Texas cities, said Chief Executive Grant Feek. Though Feek declined to disclose which Florida cities the company is targeting, he noted that Tred typically chooses densely populated areas, like Miami, for example. The company, which […]

  • FTC Proposes Amendments to Safeguards and Privacy...
    by Peter Cockrell on March 14, 2019 at 3:04 pm

    Last week, the Federal Trade Commission issued proposed amendments to its Safeguards Rule and Privacy Rule, both promulgated under the Gramm-Leach-Bliley Act (GLBA). The Safeguards Rule, which originally went into effect in 2003, requires that financial institutions develop, implement, and maintain a comprehensive information security program. The Privacy Rule, which originally went into effect in 2000, requires that financial institutions […]