AmeriCredit sets record
FORT WORTH, Texas - Subprime lender Ameri-Credit Corp. reported a record profit of $15.7 million for its fiscal third quarter ended March 31, up 55 percent from a year earlier. Loan volume nearly doubled, to $480 million. The company opened 11 branch offices in the quarter, for a total of 119 in 33 states.
FIRST ENTERPRISE OUT EVANSTON, Ill. - First Enterprise Financial Group Inc. announced it expected to cease its operations this month and transfer the servicing of its remaining loans to another company. First Enterprise and its subsidiary, First Enterprise Acceptance Co., a subprime auto lender based in Enterprise, Ga., filed for Chapter 11 bankruptcy protection March 12.
BANCORP LEASING MINNEAPOLIS - U.S. Bancorp added leasing to its auto finance offerings, through a new division, U.S. Bancorp Consumer Leasing Inc. The bank already does business with more than 2,500 dealerships in a 20-state area in retail loans, floorplan and subprime lending. Greg Jaeger, business manager of the bank's dealer financial services division, said customers will receive approvals within 10 minutes of applying for a lease.
CHAIRMAN QUITS SOLON, Ohio - Sam Frankino, chairman of troubled subprime auto lender National Auto Credit Inc., stepped down March 31 under pressure from directors. The company's former auditor, Deloitte & Touche LLP, quit in January, saying it could no longer rely on information provided by management. The New York Stock Exchange suspended trading in the stock last month and delisted the company. Three directors resigned in March, and called for Frankino to resign.
FINISH WARRANTY BOLTON, Conn. - Simoniz USA Inc. is marketing a five-year service contract that covers interior and exterior finishes. Lease customers who want to avoid charges for excess 'wear and tear' are an important target market, said Mark Trahan, director of the 'System 5' division. The Simoniz program also covers damage from acid rain or other environmental damage that factory warranties may not cover, he said.