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dealers and advise them that it was in the business of acquiring
installment contracts on an ongoing basis. Second, ACC would
enter into the independent agreement with each dealer that
decided to sell its installment contracts to ACC, and the dealer
would provide ACC with its sellers license. Third, the dealer,
when faced with a prospective automobile buyer who did not
qualify for traditional financing, would alert the buyer to ACC’s
financing business. Fourth, a buyer who wanted to finance the
purchase with ACC would complete a detailed credit application
that the dealer would transmit to ACC by facsimile. Fifth, ACC
would record the application in its daily log and perform its
credit review process. Sixth, to the extent that ACC decided
favorably on a credit application, and the buyer accepted ACC’s
financing arrangement,5 ACC would issue the dealer a check for
the 65-percent amount on the next Friday, or, if ACC had not yet
received the requisite documentation from the dealer, on the
first Friday after it received that documentation. One piece of
documentation required by ACC was the fully executed installment
contract that was printed on a form that bore ACC’s name, logo,
address, and telephone number. Upon receipt of this contract,
ACC assigned the applicant an account number and entered all
applicable information into its computerized collection system.
5 ACC’s approval of an application did not always result in
its acquisition of the related installment contract. An
applicant sometimes decided for one reason or another not to
accept ACC’s financing arrangement.
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Last modified: May 25, 2011