- 9 -
ACC’s credit review process generally included six steps,
all of which ACC could perform within 3 to 4 hours. First, ACC
would access electronically credit bureau reports on the
applicant and assign points to certain items shown on the
reports. Second, ACC would measure the total points either
against preestablished levels for approval or denial or against
an arbitrary level of approval or denial that was ascertained
intuitively. Third, ACC would analyze through debt-to-income and
loan-to-value ratios an applicant’s ability to pay the debt,
taking into account his or her disposable income and income per
dependent. ACC would sometimes perform in connection with this
step a budgetary analysis to suggest changes to the loan terms
(e.g., by decreasing the monthly payment over a longer time
frame) so as to meet preestablished target ratios. Fourth, ACC
would conditionally approve or deny an applicant on the basis of
all of the information that it had as of yet accumulated. Fifth,
as to applications that received a conditional approval, ACC
would perform an additional review as to the applicant by
verifying (mainly by telephone) his or her employment, residency,
and personal references, and by interviewing the applicant by
telephone. Sixth, as to the applicants who passed this
additional level of review, ACC would communicate to the dealer
ACC’s approval of the applicant. In some instances, ACC would
inform the dealer that it was unwilling to finance the purchase
under the terms offered to it but would finance a lesser amount
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