Articles by: George Yacik

The Implications of an Expanding Repo Industry

The Implications of an Expanding Repo Industry

Compliance, Operations July 28, 2014 at 3:08 pm

Led by automobiles, the repossession business is poised to enter five relatively fat years following five lean years, bolstered by a stronger economy, greater sales of new vehicles and increased lending to borrowers with less than perfect credit, according to a new report. Repo companies that do their business “theRead More

How to Warn Consumers About Markups

How to Warn Consumers About Markups

Compliance, Sales & Marketing July 10, 2014 at 11:37 am

SCCU pays its dealers fixed reserve fees, “but they know that we will not tolerate the arbitrary charging of a rate based on what we think we can get away with at the expense of the buyer,” Valdes said.

What Goes Into a Lender’s Decision to Move

What Goes Into a Lender’s Decision to Move

Management, Operations June 25, 2014 at 10:13 am

Toyota’s recent decision to move its headquarters to the Dallas area after 57 years in Los Angeles County is bound to leave you wondering; In the end, what was it that pushed Toyota over the edge in its decision?

How a Former Captive Became the Nation’s Largest Lender

How a Former Captive Became the Nation’s Largest Lender

Management, Operations June 13, 2014 at 10:45 am

How did this former captive exapand its auto business to become a dominant player in this increasingly competitive space? And what can other lenders learn from the company that has grown to be the nation’s top lender according to the latest Auto Finance News Big Wheels report.

Speed, Simplicity Trump Rates in Cultivating Dealer Partnerships

Speed, Simplicity Trump Rates in Cultivating Dealer Partnerships

Best Practices, Operations May 29, 2014 at 10:18 am

No auto lender needs to be reminded how competitive their business is. But what’s the best way to make both your dealer partners and retail borrower customers happy? Having low interest rates and reasonable payback terms certainly help. For example, Space Coast Credit Union in Melbourne, Fla., offers competitive interestRead More

Alternative Credit Scoring Helps Widen Pool of Eligible Borrowers

Alternative Credit Scoring Helps Widen Pool of Eligible Borrowers

Best Practices, Operations, Risk May 17, 2014 at 12:00 pm

Alternative scorers have built models that report more quickly and frequently than traditional scorers, and have access to consumers that would otherwise be difficult to reach. These are the so-called ‘underbanked,’ a pool of consumers that use nontraditional financial services out of need or preference.

New Model Gives Indie Dealers Greater Leverage

New Model Gives Indie Dealers Greater Leverage

Best Practices, Operations, Uncategorized April 23, 2014 at 9:58 am

One of the biggest problems independent auto dealers have is getting financing to run their credit operations. Now, a Milwaukee-area entrepreneur with a long auto sales pedigree has come up with a way to help dealers raise more money, and lower their financing costs while allowing a new group of investors to get into the auto finance business.

Lenders Struggle with CFPB Auto Dealer Edicts

Lenders Struggle with CFPB Auto Dealer Edicts

Compliance April 9, 2014 at 12:53 pm

Lenders are being required to act as a “policeman” over the actions of their dealer clients—who are not regulated by the CFPB—and risk alienating those relationships even if the dealers haven’t violated any fair lending laws.

Are Repossessions The Best Market Strategy?

Are Repossessions The Best Market Strategy?

Operations, Uncategorized March 27, 2014 at 8:40 am

The costs associated with repossessing vehicles is rising sharply, even as consumers are much more inclined to pay their auto loans over their other debts, including their mortgages. That would seem to behoove loan servicers to explore more “borrower-friendly” tactics, including loan modifications, to keep customers in their vehicles and avoid repos except as a last resort.