BLOG FOR SPECIAL FINANCE CAR DEALERS
Another One Bites the Dust
It’s beginning to sound like the hit song from Queen in 1980, as another lender, this time Regions Bank, pulls the plug on indirect auto lending.
The Landscape is changing
Here at Auto Credit Express, we want to keep our dealers informed of what is going on not only in the subprime lending sector, but in the overall banking industry. This is why we felt that this information might be of particular interest to our customers.
1,600 Dealers Affected
In an announcement made last week by Regions Bank, dealers were informed on October 9th that the Birmingham, Alabama-based lender was eliminating its indirect loan program and applications would not be accepted after the close of business that day.
According to a company spokesman, approximately 2,600 auto dealers were impacted by this decision and although the company does business in 16 states, the majority of the business was with dealers in Florida, Alabama, Tennessee, Georgia and Mississippi.
Loan Portfolio
The decision affects only the bank’s indirect retail program. Mel Campbell, spokesman for Regions Bank, explained that the company is still in the car loan business, but customers will have to apply directly at one of the bank’s 1,900 branches. Mr. Campbell went on to state that the decision was not based on any subprime issues, since only 1% of the bank’s portfolio is subprime.
About Regions
Regions Financial Corporation is a member of the S&P 100 Index. With $144 billion in assets, Regions serves customers in 16 states across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates almost 1,900 banking offices. Its Investment and securities brokerage, trust and asset management division, Morgan Keegan & Company Inc., provides services from over 400 offices.
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