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June 6, 2005


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Anonymous

7/26/2012 04:10 PM

Excellent points. We are aware of these, but need to keep reminding ourselves.

Anonymous

7/26/2012 04:10 PM

This article has some unrealized potential. One effect of indirect lending is a surge in new account fraud, and the subject was untouched in this article. I would be very interested to read about what indirect lending programs recommend and what other credit unions are doing to combat fraud.

Anonymous

7/26/2012 04:10 PM

A bit general but good none-the-less

Anonymous

7/26/2012 04:10 PM

Good points, but these are the obvious points. I would like to see if other credit unions have experienced decreases in liquidity and margin due to accelerated CUDL growth.

Anonymous

7/26/2012 04:10 PM

Addressing the isue of fraud. 1) Fraud accounts are covered in YOUR dealer agreement. If the deal is a fraud the dealership pays off your loan and picks up the vehicle. It should be no lost to the credit union. Another verification is when you mail the Member a letter about their purchase of the vehicle and the vehicle your have financed. You also request a current copy of the purchaser's drivers license. Information on the current credit report pulled by the credit union (not a dealers copy) will alert you on the social security you have used. 2) It is most important that the credit union knows their dealers. Dealerships do a much better job when there is a working relationship between them and the credit union.

Anonymous

7/26/2012 04:10 PM

Indirect Lending Technologies, LLC has has concentrated on helping design policies that draw good paper through the system. And it appears that the real key to cross-selling is getting that new member into a Checking Account - until that happens - they will never really be an active member.

Anonymous

7/26/2012 04:10 PM

Another solid control to consider: when speaking with the borrower, identify characteristics of the vehicle for confirmation (i.e, particular options such as sun roof, six CD changer, etc.)

Anonymous

7/26/2012 04:10 PM

Good information and observations, but as a whole, the credit union industry continues to resist indirect lending and thus loose out on valuable opportunities to increase membership growth. Until credit unions understand that car dealers are partners for financing rather than pariahs, indirect lending will continue to be a mystery. Big banks and finance companies have caught the vision that dealers are the major source for consumer automobile loans. Credit unions in the US need to heed the call and serve their members by offering this product.

barry kirby

7/26/2012 04:03 PM

More on Indirect Lending at www.barrykirby.com

Jared Kasper - OAG Indirect

7/26/2012 03:58 PM

This is a nice recap of the basics. Until recently, there have not been a lot of options for Credit Unions to get into Indirect Lending without a sizeable expense in technology and staff. Some Indirect Lending platforms still encourage an environment where "cheaper is better", and even with increased loan volume, Credit Unions still are not achieving the spread or return to justify the risk associated with dealer originated indirect loans.

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