A recent study shows that, despite the fact that the country is six years out from the crisis that put financial services providers in a highly negative light, the public continues to have a pessimistic view of the industry and the organizations involved.
In a first of its kind study, researchers were able to find scientific evidence to prove a long-standing hypothesis that IT and technology professionals across a wide range of industries prefer an integrated solution composed of hardware, software and services over a piece-by-piece approach. This philosophy has solid technological roots, as it was originated and supported by Oracle CEO Larry Ellison and the late Steve Jobs, co-founder, chairman and CEO of Apple.
In recent news, The Federal Trade Commission found that Consumer Portfolio Services (CPS), a subprime auto finance lender, used a number of “illegal tactics” while servicing customer accounts and attempting to collect on consumer loans. The company will pay more than $5.5 million to settle the charges that affected over 160,000 accounts. According to the FTC’s findings, CPS was found in violation of servicing loans by misrepresenting owed fees, collecting on monies that borrowers did not owe, improper assessment and collection of fees – including making unauthorized debits from borrowers’ bank accounts and harassment of consumers.
There’s bad news on the horizon for many homeowners who currently have home equity loans. According to a recent article in the New York Times, when these home equity lines of credit (HELOC) reach their 10-year anniversaries, they are resetting. The reset causes the borrower to reach even deeper into his wallet and not only pay interest on the loan, but also pay on the principal. Borrowers might see their monthly payments triple because of this reset – which is especially daunting for individuals and families who are in subprime loans.
Good news for consumer auto lenders, with vehicle sales on the rise, consumer satisfaction with financing providers continues to increase. According to J.D. Power’s 2013 U.S. Consumer Financing Satisfaction Study, roughly 95% of auto consumers indicated that, thanks to a positive customer service experience, they would patronize the same lender when purchasing a new vehicle or recommend them to a friend or family member. The study’s subjects – representing buyers of luxury as well as non-luxury vehicles – pointed out satisfaction with lender communication, prompt account updates, and customer service as the most important factors in a satisfying car financing experience. In the crowded retail automotive industry, consumers are faced with many choices when looking for auto financing. Consumers are looking for more than just a good interest rate – they are also looking for positive onboarding and easy finance servicing experiences.
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