Here’s an interesting title loan lending tactic:
“Leap Financial buys cars from lenders that are in the process of repossessing them from their owners. The company “leases” them back to the same owners for a lower monthly payment. The lender gets more $$ back on their balance sheet than it would if it had sold the borrower’s car at an auction. The borrower gets the car back — with a GPS-based starter-interrupter that disables the car if the customer misses a payment.” Said Condon: “We get shockingly good results.”
With all the CFPB changes in business practices on the way, it’s easy to forget how resourceful and inventive lenders in the car title loan, payday loan and installment loan industry are. Demand by households continues to increase for these products. Banks are dropping like flies when it comes to servicing the credit challenged consumer.