Comment by Anthony West on April 22, 2009 at 1:40pm

This is just a surreptitiously promotion for Pay Day Lending.

Comment by JJ Hornblass on April 22, 2009 at 6:47pm

To me, this was an example of how credit risks can compound for the collateral lender.

Comment by John Piper on April 22, 2009 at 10:43pm

I would like to know what the inquiry on the bureau would show up as. I seriously doubt they have 150 lenders knocking down the doors for these unsecured loans. I imagine this company is pulling the credit, which will show a inquiry. If anyone figures it out, please let us know. Thanks

Comment by Tim Janssen on April 23, 2009 at 5:30pm

I spoke the David Johnston at the VehicleMicroFinance.com. He claimed they have 150 local lenders they work with and they do not look at the customers credit so there's no inquiry. They look at POI, length of employment, etc. I explained how they are putting a dealer and lender at risk by having a financed down payment. He tried to explain there is less advance on the note with a borrowed down payment so everything is good. Not. He sounded more like an IT guy than a finance guy or at least a babe in the woods...

Comment by JJ Hornblass on April 23, 2009 at 7:21pm

Tim, thanks for calling him. I've got to tell you, you're report really disturbs me. What is clear is that Johnson does not fully understand how HIS risks are amplifying -- although he probably thinks that he is simply brokering his risk to the next sap. That's very 2005 of him. I'm not sure what the industry can do about this, but something should be done.

Comment by Sharon Brooks on April 30, 2009 at 1:24pm

Customers have been taking out "pay day loan's" for some time to use for their down payment. Some states have a maximum of $500 loans. This is a company who utilizes 150 different pay day companies-they take a fee which is charged to the customer on top of the other companies fees. These loans are due by the customers next pay date which is usually one or two weeks after they purchase, we have seen that this causes problems with making their first payment, especially in those states that the TT&L is not financed as this customer not only has to pay first payment, pay day loan and TT&L in the first month.

Comment by JJ Hornblass on June 2, 2009 at 6:52am

Thank you for your post, David. Perhaps you could finish the last item -- "Do Loans Cause Car Payment Problems?" -- because that seems to be the central issue.

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