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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.
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Last modified: May 25, 2011