Articles

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Due Diligence Instead of Damage Control: Stopping Auto Lending Fraud Before It Starts

Payments, Risk April 10, 2018 at 10:36 am

The hard-won lessons of the 2008 financial crisis are more relevant today than ever. While the mortgage industry tightened regulations and lending standards post-crisis, the same cannot be said for the auto lending industry. The volume of auto lending has been steadily growing since 2010, and fraud is unfortunately onRead More

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Lenders Will Require Larger Down Payments as Underwriting Tightens

Risk April 6, 2018 at 11:00 am

Dealers and lenders have a lot of tricks at their disposal to keep monthly rates affordable for consumers. If the monthly bill is too high, just extend the term. If it’s still too high, perhaps the consumer would consider a certified pre-owned vehicle off-lease. If a new car is non-negotiable,Read More

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How the Digital Age Could Shape Collection Strategy in the Coming Years

Guides, Operations, Opinion, Payments April 4, 2018 at 1:53 pm

We live in the Age of Information. Humans produced 2.5 quintillion bytes of data per day in 2017, according to IBM, and it is often said that humans have generated 90% of the data in the world in the last three years alone. This data is generated through people’s purchasing behaviors, webRead More

What the FTC Says Should Be on the Auto Industry’s Radar [PODCAST]

What the FTC Says Should Be on the Auto Industry’s Radar [PODCAST]

Compliance, Podcast March 29, 2018 at 11:22 am

With lingering uncertainty over what will become of the CFPB and unconfirmed appointees to the Federal Trade Commission, lenders’ compliance obligations are in flux. In this episode of The Roadmap, Dama Brown, Southwest regional director of the FTC, clears up confusion about collection practices and the Fair Debt Collection PracticesRead More

3 Ways AI Can Improve Your Lending Business Today

3 Ways AI Can Improve Your Lending Business Today

IT, Risk March 28, 2018 at 1:36 pm

Everyone talks about artificial intelligence in futuristic terms. The internet is aflutter with discussions of whether AI is dangerous, if robots will take over a la Terminator-style, and when this will happen. But the truth is, AI is already here and making a positive impact. Research analysts predict a 300% increase inRead More

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15 Tricky Questions Consumers Ask About Auto Finance

Guides, Operations, Sales & Marketing March 27, 2018 at 11:14 am

Any company needs to anticipate the questions their consumers will ask — before they ask them — in order to create a positive customer experience. Auto finance is no different. In fact, since auto loans and leases are relatively complex products compared to, say, neckties, lenders should do more upfrontRead More

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Nicholas Financial Gears Up for Return to ‘Disciplined’ Subprime Underwriting

Best Practices, Management, Risk March 26, 2018 at 10:00 am

Amid a 41% year-over-year decline in originations during the fourth quarter of 2017, Nicholas Financial hopes to get “back to the basics” and reestablish its presence in the deep-subprime market, new Chief Executive Doug Marohn told Auto Finance News. “Nicholas is a lot of things, and Nicholas has enjoyed aRead More

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The Privacy Pickle of Massive Data

IT, Opinion, Risk March 22, 2018 at 11:59 am

Mark Zuckerberg and Facebook are in quite a pickle. The Cambridge Analytica scandal that has roiled the country this week has exposed a basic truth: that privacy and Facebook’s business model are at odds. Amp up the privacy and data protections, and the social network that fuels Facebook’s growth is stanched.Read More

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It’s a New Day for the CFPB

Best Practices, Compliance, Opinion March 22, 2018 at 10:00 am

What a difference a day — or a couple of months — makes! The Consumer Financial Protection Bureau issued its five-year strategic plan in February, and boy does it paint a picture of a kinder, gentler CFPB. Well, maybe neither kind nor gentle, but I’ll settle for an agency interestedRead More