A voice from the past...
Date: Sat, 09/14/2013 - 17:36
Hi All! It's been a while since I've logged into DCC, and I'm glad to see many familiar faces! Also, hello and congrats to all the new Mods that I don't recognize!
The last few years have been very busy, both at work and at home. As many of you already knew, I used to be a Credit/Collections manager for a consumer finance company here in Chicago. What none of you probably knew was that we were the type of company that gave out high-risk/high-rate loans, and our business was more than likely one that would be despised by the members of this community. The reality is that back in 2006 when I first found this site, it was because I googled our company name and found some posts here complaining about us. I'm sorry to say that my very first post (as a guest) was actually a backlash and retort against one of our customers, as I knew exactly who she was just by the way she described the situation.
As bad as that may sound, I never enjoyed the collections part of my job, but it goes with the territory. However, in our operations, I always made sure that we followed the laws, and I tried to work with our customers as best I could. In 10 years I've never once refused to work with a customer who wanted to pay but couldn't. It was always the customers who had well-paying jobs but refused to pay that we went after in court. After I joined this site, I started to grasp a feel for what it was like to be "on the other side," and my posts over the years really were my way of helping out, although my replies do tend to come from the perspective of a lender. Don't get me wrong though, I've always despised the illegal PDLs and unfair business practices that CAs engage in, just as much as anybody else here.
Now that I have "confessed", as you will, I'm glad to say we are no longer in that business. As early as 2005 my boss and I saw the writing on the wall and knew it was just a matter of time before the laws changed and we would either have to close shop or change our direction; we did both. In 2009 we extended our last loan and surrendered our loan license back to the state (and as we predicted, in 2010 Illinois passed extensive loan reform).
But as we closed one business, my boss and I also opened a new business. In 2008 we created a new finance company which serves the retail automotive industry. Simply put, we provide financing to warranty companies and car dealers, who in turn provide our 0% payment options to their customers. We charge no interest, and there are no collections. (And for those 2 reasons, I love our new company and my new job!).
All that being said, the reason I haven't been on these forums for a while was basically because I was busy starting a new business. Somewhere in there I also bought my first house, and now having to do things like mow the lawn takes up more of my time.
A little bit of information on our old business, for those wondering where I came from...
The last few years have been very busy, both at work and at home. As many of you already knew, I used to be a Credit/Collections manager for a consumer finance company here in Chicago. What none of you probably knew was that we were the type of company that gave out high-risk/high-rate loans, and our business was more than likely one that would be despised by the members of this community. The reality is that back in 2006 when I first found this site, it was because I googled our company name and found some posts here complaining about us. I'm sorry to say that my very first post (as a guest) was actually a backlash and retort against one of our customers, as I knew exactly who she was just by the way she described the situation.
As bad as that may sound, I never enjoyed the collections part of my job, but it goes with the territory. However, in our operations, I always made sure that we followed the laws, and I tried to work with our customers as best I could. In 10 years I've never once refused to work with a customer who wanted to pay but couldn't. It was always the customers who had well-paying jobs but refused to pay that we went after in court. After I joined this site, I started to grasp a feel for what it was like to be "on the other side," and my posts over the years really were my way of helping out, although my replies do tend to come from the perspective of a lender. Don't get me wrong though, I've always despised the illegal PDLs and unfair business practices that CAs engage in, just as much as anybody else here.
Now that I have "confessed", as you will, I'm glad to say we are no longer in that business. As early as 2005 my boss and I saw the writing on the wall and knew it was just a matter of time before the laws changed and we would either have to close shop or change our direction; we did both. In 2009 we extended our last loan and surrendered our loan license back to the state (and as we predicted, in 2010 Illinois passed extensive loan reform).
But as we closed one business, my boss and I also opened a new business. In 2008 we created a new finance company which serves the retail automotive industry. Simply put, we provide financing to warranty companies and car dealers, who in turn provide our 0% payment options to their customers. We charge no interest, and there are no collections. (And for those 2 reasons, I love our new company and my new job!).
All that being said, the reason I haven't been on these forums for a while was basically because I was busy starting a new business. Somewhere in there I also bought my first house, and now having to do things like mow the lawn takes up more of my time.
But, I am glad to be back, and I do have lots more information to share and post! Again, glad to see you all!
A little bit of information on our old business, for those wondering where I came from...
Founded by the principals of Jacobs' Twin Auto Plaza, one of the largest car dealerships in Chicago, Universal Lenders was originally organized in 1958 as Rocket Finance Co., a joint venture created for the dealership to finance its high-risk customers who couldn't otherwise obtain financing. A relatively new concept for its time, the secondary market proved to be a rewarding and profitable experiment. As the company realized its potential for new business, it changed its name to GOI Acceptance Corp, and started buying indirect chattel paper from other car dealers across Chicago who had the same problem securing traditional financing for their own customers.
An ever-changing market brought the 1990s, with more players offering lower rates. GOI simply couldn't compete with the dot-coms, so it sold most of its accounts at a premium and then changed its direction. Changing its name to Universal Lenders, it obtained a direct loan license from the state, and ventured into the consumer market by offering short-term unsecured/secured loans to the high-risk public. As we saw the "Pay Day Loan" trend rising among consumers, from 1994 through 2009 Universal Lenders made it's niche in helping consumers eliminate their high-rate payday loan habits by consolidating them into lower-rate installment loans.
From 2005-2010, consumer lobbies and increasing public outcry over high-rate/high-risk loans led to extensive financial regulation and rate caps within the State of Illinois. In 2009, Universal Lenders Inc ceased its consumer lending operations and surrendered its loan license to the State of IL. Universal Lenders Inc still operates primarily to wind down, service and collect on its remaining accounts.
Touché
I guess it really doesn't need to be a secret. I've filled in the blurb above with the actual name instead of XXX's (makes for better reading that way).
