WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) published a rule today that will allow the agency to supervise larger nonbank auto finance companies for the first time. Knowing your credit score before you seek financing can give you more leverage when negotiating a loan with a finance company or other type of lender, she says. The CFPB will accept complaints about a finance company and will channel them to other regulators, Sherry says. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered. About 60 per cent of the growth was attributed to companies under the Productivity Loan Programme.
For Singapore’s largest finance company, Hong Leong Finance, this includes designing loan products to meet specific needs of small- and medium-sized enterprises (SMEs). Hong Leong Finance rolled out new digital devices in its Jurong East branch earlier this year, as part of its efforts to engage SMEs, which account for the bulk of its loans. Hong Leong Finance offered a Productivity Loan Programme from 2013 until March this year, giving incentives to firms that signed up for productivity enhancing loans.
Hong Leong Finance has seen profits decline amid slowing economic growth, and it’s hoping to reverse the trend. Hong Leong Finance reported net profits of S$62.8 million for the year ended Dec 31, 2014, down from S$70.1 million the year before. Observers said such measures can help finance companies stay relevant as competition from both banks and non-bank financial institutions is on the rise.
Finance companies get private and external sources of funding, they don’t depend on deposits, so they can lend out to who they want, when they want and at what rate they want,” he added. Industry watchers said while this flexibility can give finance companies an added edge, one thing to keep a look out for is risky loans. For instance, loans by finance companies have to be secured by property or other assets.
Hong Leong Finance, however, rejected suggestions that finance companies could make riskier loans in a bid to boost earnings, citing Singapore’s tough regulatory regime for finance companies. Like banks, deposits with finance companies are also insured by the Singapore Deposit Insurance Corporation (SDIC) up to S$50,000 with each member bank or finance company. When it comes to car loans, captive finance companies offer loans to car buyers who want to purchase vehicles from their parent companies.