Credit unions can mitigate risk

More and more Credit Unions around the county are doing indirect lending and many have a “Fresh Start” type of program that helps credit-challenged members obtain a late model, low mileage, reliable pre-owned vehicle at fair and reasonable interest rates.  This is a “win win” situation for the consumer and the lender.

To curb the natural losses that will occur when dealing with credit-challenged borrowers, credit unions are using GPS technology as a risk mitigation tool and making a GPS device a requirement to obtain the loan.  The decision to use a device can be part of the underwriting process and full disclosure is encouraged.

Credit unions offering  “Fresh Start” vehicle loans can also add ancillary products such as GAP insurance and service contracts, which yield commissions thereby making the loan a better investment for the lender.

Call for a consultation, more information or to order, (678)673-0856.