AFSA to Obama: Don't Forget Consumer Finance
As President Obama prepared to announce revisions to the Troubled Asset Relief Program (TARP), the American Financial Services Association published an open letter encouraging the president to keep consumers' "everyday borrowing needs" in mind by allowing consumer finance companies to benefit from the new guidelines.
WASHINGTON — As President Obama prepared to announce revisions to the Troubled Asset Relief Program (TARP), the American Financial Services Association published an open letter encouraging the president to keep consumers' "everyday borrowing needs" in mind by allowing consumer finance companies to benefit from the new guidelines. "
Our hope is that your administration will support an expansion of the Term Asset-Backed Securities Loan Facility (TALF), whose objective is to increase credit availability for consumers and small businesses by facilitating the issuance of asset-backed securities (ABS) backed by auto loans and leases, floor-plan financing, student loans, credit cards and small business loans," wrote Chris Stinebert, AFSA's president/CEO. "
While TALF is a step towards restoring market liquidity, we believe the program’s current eligibility requirements will prohibit most finance companies from participating," Stinebert continued. "Absent the ability to participate in TALF, many financial services companies, especially those within the auto industry, would not be able to finance consumer loans for products and purchases essential to the nation’s recovery."
In addition to providing access to TALF funds for qualified finance companies, AFSA wanted the president to require any banks that accept TARP funds to guarantee they would keep those companies' bank-provided lines of credit open.
On Tuesday, Treasury Secretary Tim Geithner announced the new guidelines, including a pledge to increase TALF funding from $200 billion up to $1 trillion. Geithner specifically mentioned auto-, credit card- and small business-backed loans as part of the plan's expanded consumer and business lending initiatives. Stinebert said that the new plan "does many positive things." "
At the same time, we believe the TALF program must be revised to permit eligibility for investment-grade securities beyond those in the top tier," Stinebert said Wednesday. "This, in turn, would allow greater participation by consumer finance companies, which account for over 40 percent of all non-mortgage related consumer loans ... AFSA will continue to emphasize the important role played by consumer finance companies in any type of economic recovery program."
More F&I
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →