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Budzynowski analyzed credit applications and supervised credit
investigations. Hope McGee analyzed credit reports and verified
all information provided by credit applicants, e.g., by directly
contacting employers, banks, and creditors.
ACC pays each of its key management personnel a base salary.
Each of these individuals is also entitled to receive an annual
bonus at the sole discretion of ACC’s board of directors. The
bonuses are paid from a “bonus pool” established by ACC and in
which ACC places funds in an amount up to 16.25 percent of its
pretax net profits. Except in the case of James Blasius, no
restrictions exist as to the amount of compensation that ACC may
pay to its officers or key employees. James Blasius’ bonus is
limited to 55 percent of the pool.
Under the terms of each installment contract, an individual
buys an automobile from a dealer at a set price to be paid (with
interest) in monthly installments. The average rate of interest
charged to the buyers is approximately 22 percent. The length of
repayment ranges from 12 to 36 months.
ACC and the dealers have an independent agreement under
which the dealers sell some of the installment contracts (and the
right to the corresponding payments of principal and interest) to
ACC at a price equal to 65 percent of each contract’s principal
amount (i.e., at a 35-percent discount). As of April 30, 1993,
ACC acquired the installment contracts from 13 dealers, 3 of
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Last modified: May 25, 2011