Finance companies – Save Western OH http://www.savewesternoh.org/ Sat, 11 Sep 2021 21:20:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://www.savewesternoh.org/wp-content/uploads/2021/08/cropped-icon-32x32.png Finance companies – Save Western OH http://www.savewesternoh.org/ 32 32 Captive financial firms are the key to customer access, profitability http://www.savewesternoh.org/captive-financial-firms-are-the-key-to-customer-access-profitability/ http://www.savewesternoh.org/captive-financial-firms-are-the-key-to-customer-access-profitability/#respond Mon, 06 Sep 2021 04:00:01 +0000 http://www.savewesternoh.org/captive-financial-firms-are-the-key-to-customer-access-profitability/ At the effect of the captiveaccounting change of es, and the last on consumer credit Earlier this year, the captives implemented a significant accounting change. And I don’t want to be bored [you] with the details, but the basic goal was to assume that losses on leases would occur in advance rather than at some […]]]>

At the effect of the captiveaccounting change of es, and the last on consumer credit

Earlier this year, the captives implemented a significant accounting change. And I don’t want to be bored [you] with the details, but the basic goal was to assume that losses on leases would occur in advance rather than at some point. And that increased the reserves of Ford Motor Credit and GM Financial at the start of the year. And now, with high recovery rates and robust consumer credit quality, automobiles have been able to reassess what the assumed total losses might look like. And essentially, they’re getting back that profit potential that was taken away from them at the start of the year and is coming back.

Now, when we talk about consumer credit and the state of the consumer, they are the ones leading the charge in the market. And you can see it through the GDP data with double-digit growth in goods and services in July. I’m sure it would have been higher too if there had been more vehicles available.

But I think what that means for Ford Motor Credit and GM Financial, they were able to record over half a billion in second quarter pre-tax profits thanks to lower expected credit losses. I would expect this trend to ease a bit in the second half. And that’s because there were government programs that were given at the height of the pandemic that are passing. And so you will see credit increase a bit in terms of losses, but should still be positive year over year for finance companies.

At if a Subaru-Toyota Financial marriage makes sense

I think Subaru is an interesting element, especially because about 20 percent of Subaru’s business is rental business. So having access to very low cost financing – and Toyota has the cheapest financing in the global auto industry – is a mechanism they could use to further increase their bottom line and certainly share that with their partner Subaru.

Yes Stellantis and Tesla could also be targets for Toyota Financial

I think with Stellantis… now that they’ve combined and the merger seems to be going pretty well, they should really think about their own captive finance company. Obviously, they have an interest in one. But having captive global funding to really tackle the Ram and Jeep business, I think, would be a really good competitive move on their part, especially when you think about Ford and what they do, tackle the business customer in a more significant way. In my opinion, being able to offer the Ram customer the same type of product would be a wise move from a competitive point of view.

Tesla, as we know, is vertically integrated. They do it all themselves, and as their credit quality improves – and I think they’ll eventually go investment grade, maybe in the next 24 months – it’ll open the doors for them to have also a fully-fledged financial company.

At if Stellantis could extend its European captive in North America

I don’t want to pretend I’m a regulatory analyst, but what I would tell you is that this is something the old Fiat Chrysler talked about before the merger as one of their goals. And that was one of the reasons they wanted to be investment grade, was to have access to low cost financing for it. I think they understood the value of having a full captive, both from the strategic point of view that we talked about, as well as the financial benefits of having one. I guess that will be something they will look at, especially as their consolidation continues. And if the merger goes well, it will free up time for them to do it. I guess that would happen in the years to come.

The tThe obstacles Tesla would face in starting his own finance company

Departure [a captive lender] starting from scratch is difficult. And that’s why GM bought it back after selling GMAC. Maybe this is something they would consider as part of an acquisition. And the same goes for Stellantis too. It does not necessarily have to be an organically grown business. It could be something that could be acquired. Because really being able to put together the kind of talent and tech infrastructure you need would take a lot of time and for something like that it might be cheaper to run such an event through an acquisition than it does. an organically developed business.

At how GM Financial grew and strengthened

They have done a really good job over the past five years in reducing risk on an asset basis. If you look at their portfolio of personal loans in 2016, maybe 40% of it was subprime, which obviously exposes the company to operating losses during a downturn. They’ve reduced it to about 19 percent now and it’s still going down. They managed the risks there very well.

Yes a lack of a floor plan is a concern for automakers and captives

If anything, I would say it’s probably a net benefit to the dealer because the dealer has less capital tied up right now, both in inventory and I guess the other side of the balance sheet would be on the planning they have with their manufacturing partner. I think the question for the entire auto industry, and this is a major problem, is going to be, what is the right amount of inventory for the dealership? Because clearly, as the supply starts to ease, we’ve seen how powerful prices can be right now. If you replenish them at the same levels as in the past, it will again bring back big discounts and reduce your total profitability. I’m sure they’re all working on their algorithms to try and figure out what’s the right amount of inventory to make sure you’re giving the customer what they want when they want it and in the style they want. wants . But at the same time, don’t overstock resellers, and that way they can somehow maximize total profitability. This will help the entire food chain of automobiles and auto suppliers and dealers over time. But who knows in such a fragmented market if everyone will play well or if someone will go for market share. It has certainly happened in the automotive world.


Source link

]]>
http://www.savewesternoh.org/captive-financial-firms-are-the-key-to-customer-access-profitability/feed/ 0
Fooled finance companies issue $ 20,000 in loans on behalf of retiree without her knowledge http://www.savewesternoh.org/fooled-finance-companies-issue-20000-in-loans-on-behalf-of-retiree-without-her-knowledge/ http://www.savewesternoh.org/fooled-finance-companies-issue-20000-in-loans-on-behalf-of-retiree-without-her-knowledge/#respond Fri, 16 Jul 2021 07:00:00 +0000 http://www.savewesternoh.org/fooled-finance-companies-issue-20000-in-loans-on-behalf-of-retiree-without-her-knowledge/ An Auckland woman has been the victim of identity theft. Photo / Sylvie Whinray

A widowed retiree was terrified of losing her home after three separate finance companies were tricked into issuing loans in her name totaling $ 20,000.

The oblivious 78-year-old only learned she was responsible for the fraudulent debts after one of the lenders filed a warning against her humble Auckland property and another threatened to repossess of his property.

Shocked and upset, the woman filed a statement with police suspecting that her grandson had used his driver’s license to successfully apply for the loans online through an elaborate identity trick.

And despite a written record of evidence which she said pointed to the likely culprit, just seven days later, police said they were closing the case because “we have not been able to find out who is responsible”.

Two of the companies have now confirmed in writing that the woman will not have to repay the money, but only after the Weekend Herald intervenes.

She said her plight revealed a gaping hole in online loan security procedures, and whether other innocent people were being victimized because of what she believed to be lax security and people’s greed.

“They didn’t do their job properly,” she said.

The woman felt that “money-grabbing places are just looking for money” and felt “they don’t care how they get it”.

The woman, justice of the peace, lives frugally in the suburbs of Auckland.

Heartland Bank says: "Unfortunately, this client is clearly the victim of elaborate fraud." Photo / File
Heartland Bank says: “Unfortunately, this customer is clearly the victim of elaborate fraud.” Photo / File

Earlier this year, she got a call from Heartland Bank welcoming her as a new customer.

She had never heard of the bank and was shocked to learn that she had issued a loan of $ 8,223 in her name in March.

A few weeks later a letter arrived in his Land Information New Zealand mailbox informing him that Oxford Finance Ltd had registered a warning against his house.

She later learned that the finance company had issued a $ 10,000 loan in her name in April, of which she was unaware.

Shortly thereafter, a letter arrived from Alternate Finance Ltd in Christchurch warning that an account in its name was “in arrears” with a balance owing of $ 1,767.73.

Failure to reimburse would result in “additional costs and risk repossessing your property”.

Suspecting her grandson, the woman launched her own investigation.

But she says two of the companies refused to provide her with copies of the loan application documents, and one didn’t even confirm how much she owed.

After extensive communications with Heartland Bank to prove she was not responsible for the $ 8,223 debt, she received a letter dated May 5 from Risk and Compliance Officer Annette Bryce confirming that the bank had been duped.

“You and Heartland Bank were victims of ‘identity theft’ by your grandson. [your grandson] not assumed your identity and fraudulently applied for this loan, we would not both be in this situation. “

The letter made no apologies, but defended Heartland’s processes, saying it was not uncommon for personal loans “to be fully processed online with no physical interaction between applicant and lender.”

The letter did not mention whether the debt would be canceled.

In a statement to the Weekend Herald, Heartland Bank declined to say what checks it wrote before issuing the loan.

He said: “Unfortunately this client is clearly the victim of elaborate fraud” and the bank was trying to prosecute the alleged violator.

And to the woman’s relief, the bank confirmed that it would not be held responsible for the debt.

“In this application, Heartland’s legal and responsible loan obligations were met, including through the use of biometrics.

Oxford Finance is owned by Turners Automotive.

Company CEO Todd Hunter has confirmed that the woman will not have to repay the $ 10,000 loan and that, following investigations by the Weekend Herald, the warning has been withdrawn.

Oxford Finance Ltd boss Todd Hunter says: "We agree that this is a fraud and that the matter is now in the hands of the New Zealand Police." Photo / Supplied
Oxford Finance Ltd boss Todd Hunter said: “We agree that this is a fraud and the matter is now under the control of New Zealand police.” Photo / Supplied

“We agree that this is a fraud and that the matter is now under the control of the New Zealand police.”

Hunter said the loan seeker provided the woman’s driver’s license and bank statements during the application process.

They also appeared to have forged the signature of a justice of the peace verifying the request and had taken a photo of the woman which was then provided for a “digital identity check”.

Fraud was a constant risk for the industry. While the company had security systems to protect customers, nothing was “foolproof,” Hunter said.

“There is not much we can do.

“We are as much a victim as she is. Someone stole $ 10,000 from us and it is very unlikely that we will get that money back.”

Hunter admitted the bank should have confirmed in writing that it would not sue the woman for the money, and withdrew the warning, before being approached by the Weekend Herald.

“It was a mistake on our part.

“Our intention was never to pursue her to the ends of the earth for this money.”

Oxford Finance had now filed a complaint with the police and forwarded all necessary documents to investigators.

Christchurch-based company Alternate Finance declined to confirm whether the woman would be held financially responsible.  Photos / Google
Christchurch-based company Alternate Finance declined to confirm whether the woman would be held financially responsible. Photos / Google

Alternative Finance declined to comment or confirm whether the woman remains financially responsible.

Waitematā East Acting Police Inspector Callum McNeill said police received a report of the fraudulent loans in May and conducted “a number of investigations”.

They had spoken to the woman, another justice of the peace was said to have witnessed the application documents, received documents from Oxford Finance and investigated the bank records.

As a result, investigators had identified “the individual likely to be involved”.

“The police have spoken with the complainant about the progress of the prosecution, but have expressed their wish to try to resolve this matter with the person they know.

“For this reason, the person known to the complainant was not formally contacted by the police.”

Although the case is inactive, legal action could be taken at the request of the woman or the finance companies, police said.

In a statement released this week, police confirmed that one of the lenders had filed a formal complaint and that the case had been “reactivated”.

The woman said her grandson had done wrong and would have to repay the money and face the consequences that ensued.

But she also criticized the three companies for allowing loan processing and failing to contact her directly to verify claims.

“It would never have gone this far if they hadn’t allowed this to happen.”

Massey University banking expert, associate professor Claire Matthews, says lenders should do the right thing and write off the debt.  Photo / Supplied
Massey University banking expert, associate professor Claire Matthews, says lenders should do the right thing and write off the debt. Photo / Supplied

Massey University associate professor Claire Matthews, banking expert, said lenders should do the right thing and write off the debt.

“They accept an element of risk. If that risk is realized, then they have to bear the consequences.”

Matthews was concerned that it took media intervention for the companies to make it clear that the woman was not financially responsible.

The fraud was “sophisticated” by avoiding the checks and balances in place.

She expected lenders to now look at their security settings to see what improvements could be made to prevent this from happening again.


Source link

]]>
http://www.savewesternoh.org/fooled-finance-companies-issue-20000-in-loans-on-behalf-of-retiree-without-her-knowledge/feed/ 0
SECP grants licenses to three new housing finance companies http://www.savewesternoh.org/secp-grants-licenses-to-three-new-housing-finance-companies/ http://www.savewesternoh.org/secp-grants-licenses-to-three-new-housing-finance-companies/#respond Wed, 07 Jul 2021 07:00:00 +0000 http://www.savewesternoh.org/secp-grants-licenses-to-three-new-housing-finance-companies/ ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) granted licenses to three new housing finance companies in the fiscal year ended June 30, 2021, a statement released by the commission said on Wednesday. SECP believes that a revitalized housing finance company sector will help meet the huge demand for affordable housing finance in the […]]]>

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) granted licenses to three new housing finance companies in the fiscal year ended June 30, 2021, a statement released by the commission said on Wednesday.

SECP believes that a revitalized housing finance company sector will help meet the huge demand for affordable housing finance in the country.

Newly licensed housing finance companies included Pakistan Housing Finance Company Limited, Trellis Housing Finance Company Limited and Asaan Ghar Finance Limited. Over the past decade, the country has not had any licensed housing finance companies.

While being aware of the huge gap in the affordable housing finance space, the commission, in collaboration with the Pakistan Mortgage Refinance Company and the World Bank Group, conducted a comprehensive awareness campaign to highlight the opportunities for potential new entrants to tap into this vast underserved market. , indicates the press release.

In this regard, a number of webinars have been organized to impart information on the regulatory framework and legal requirements for forming housing finance companies.

SECP also guides potential investors on the financing mechanism available to housing finance companies and helps them prepare viable housing finance company business models.

The committee also supports the proposal to include these housing finance companies in the government’s housing finance subsidy program.
The aforementioned initiatives have resulted in three new entrants in the housing finance market, which are expected to start operations during the current year, he added.


Source link

]]>
http://www.savewesternoh.org/secp-grants-licenses-to-three-new-housing-finance-companies/feed/ 0
How Asset Finance Companies Can Help Fleets Achieve a Greener Future http://www.savewesternoh.org/how-asset-finance-companies-can-help-fleets-achieve-a-greener-future/ http://www.savewesternoh.org/how-asset-finance-companies-can-help-fleets-achieve-a-greener-future/#respond Tue, 06 Jul 2021 15:24:48 +0000 http://www.savewesternoh.org/how-asset-finance-companies-can-help-fleets-achieve-a-greener-future/ With increasing regularity, companies are adding sustainability goals to their business strategies. This new sense of corporate responsibility is driven in part by changing customer demand. Consumers ask questions about corporate sustainability and environmental efforts when deciding who to do business with. In the case of trucking, shippers are starting to ask questions about fleet […]]]>

With increasing regularity, companies are adding sustainability goals to their business strategies. This new sense of corporate responsibility is driven in part by changing customer demand. Consumers ask questions about corporate sustainability and environmental efforts when deciding who to do business with.

In the case of trucking, shippers are starting to ask questions about fleet sustainability and environmental stewardship efforts, in some cases asking for fuel economy data as part of the shipping contract.

Before we look at what this green move means for companies that fund asset purchases, let’s take a step back. What exactly does “green” mean? The answer is that there is no universal definition. It often refers to things like greenhouse gas emissions, energy efficiency, renewable energy sources, waste management, conservation of natural resources, etc.

One thing is clear though, if a business is telling a green story, it pays to do things that help mitigate climate change. The days of greenwashing – making people believe that your business is doing more to protect the environment than it actually is (Cambridge Dictionary) – are long gone. If a fleet – or a company funding fleet assets – is going to tell a green story, it better be able to back up its claim with evidence.

Clean transportation is an important part of a more environmentally friendly economy. According to the Environmental Protection Agency, “Greenhouse gas (GHG) emissions from transportation account for about 29% of total greenhouse gas emissions in the United States, making it the largest contributor to emissions. of GHGs in the United States. “

So what role can equipment finance companies play in this shift towards a greener future? They can start by helping their fleet customers do a fuel economy analysis and not just an analysis that gives them the average fuel economy of the entire fleet. Rather, they need to know fuel economy and freight efficiency on an asset-by-asset basis. This information is essential in developing an asset replacement strategy.

Today’s newer utility vehicles are more efficient and cleaner than those made five or six years ago. Truck makers continue to push the boundaries of fuel economy, sometimes spurred on by emissions regulations. In fact, Phase 2 GHG emissions standards are already in place for model year 2021 through model year 2027. These standards are expected to reduce CO2 emissions by approximately 1.1 billion tonnes. metric.

Knowing the freight efficiency of each asset will help you work with the fleet to develop an asset replacement strategy that decommission the less efficient assets while bringing the most efficient assets to market.

Another way equipment finance companies can help is by encouraging fleets to start testing alternative fuel vehicles, whether they are diesel-electric hybrids, battery electrics, fuel cell electrics, renewable CNG. or diesel, etc.

Without incentives, it’s harder to justify the ROI of some of these alternative fuel vehicles based only on fixed costs, but make sure fleets factor in some of the indirect cost values.

Failure to operate a green fleet could result in lost business for companies that expect their transportation service providers to embrace sustainable transportation. There is also the benefit of being seen as having a green fleet and even the issue of driver retention. While some of these things can be difficult to assess, each fleet should attach a dollar value to them so that they can properly assess their options.

When you read all of the ongoing developments with the electrification of trucks – all major truck OEMs have announced electric truck offerings – it becomes clear that at least some parts of the movement of goods will be handled by electric trucks. Encouraging fleets to dip their toes into the electric truck fleet is another way equipment finance companies can help.

While not all fleets can be on the cutting edge of all new technology, finance companies have some obligation to their existing customer base to ensure that they are not lagging behind in technology as there is there is no competitive advantage in being the last to adopt a new technology.

I think it’s safe to say that we are on the right track towards a cleaner, greener future and that transport will play an important role in getting us there. Commercial lenders have the opportunity to take a leadership position and ensure that their clients are well positioned for that future.


Source link

]]>
http://www.savewesternoh.org/how-asset-finance-companies-can-help-fleets-achieve-a-greener-future/feed/ 0