- 7 - which sold to ACC 69.4 percent of the installment contracts which ACC acquired. ACC is not obligated to acquire all of the installment contracts offered to it by the dealers but generally must decide on whether it will acquire a particular installment contract before the related automobile sale is finalized. ACC rests its decision as to the acquisition of an installment contract on its analysis of the buyer’s credit worthiness. That analysis generally includes ACC’s review of the buyer’s credit application, ACC’s obtaining of one or more credit reports on the buyer, ACC’s verifying of the buyer’s job status, salary, and residence, and ACC’s evaluation of various aspects of the buyer’s credit history such as payment history and financial stability. If ACC acquires an installment contract, the dealer generally assigns its rights under that contract to ACC as part of the automobile sale, and ACC pays the dealer the 65-percent amount upon ACC’s receipt of all of the documents relating to the installment contract. The automobile buyer pays ACC all amounts due under the installment contract, and the automobile buyer collateralizes his or her obligation to make those payments with the purchased automobile.4 ACC may repossess and sell the automobile if the buyer defaults on the installment contract. ACC’s acquisition of installment contracts generally followed an established procedure. First, ACC would contact 4 ACC services all of the installment contracts it acquires.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011