Lender holds the COVID 19 pandemic responsible for the reduction, in which it will borrow cars with fewer dealers and focus on those with whom it already has close relationships. (Reuters) – Wells Fargo and Co will stop lending to the majority of its independent car dealership customers because of the economic challenges posed by the COVID-19 pandemic, a spokeswoman said on Tuesday. If you are enrolled in our Automatic Credit Payment (ALP) program and your payment is scheduled for three or more business days after your deferral is authorized, your automatic payments are maintained until the due date of your new payment. If your ALP is scheduled for less than three business days from the date your deferral is approved, the payment will be made as planned and your deferral will begin the following month. In recent years, Wells Fargo has had a car-ready business. In 2018, the company invested new energy in its auto credit business after paying a $1 billion fine for violating the Consumer Financial Protection Act by forcing its auto credit customers to buy insurance they didn`t need, according to the Consumer Financial Protection Bureau. Wells Fargo`s first-quarter auto credit was $6.5 billion, up 19 percent from the first quarter of 2019, the company said in April, adding that this reflects “our new focus on increasing auto loans after the company`s restructuring.” “As a responsible lender, we also have an obligation to review our business practices in the face of COVID-19`s economic uncertainty and have informed the majority of our independent customers that we are suspending the acceptance of COVID-19 applications,” the company said. Sign in to your account, select your automatic credit from the account summary, and then select a call for help at the top of the Auto-Credit page to request a deferral of payment. Once you have submitted an application, we will check within the next 5 business days to determine if you are eligible for a deferral. We will send you a letter on your deferral authorization within 10 business days. CNBC reported here on Tuesday that the lender, which is concerned about defaults, had informed hundreds of merchants last month that it would drop them as customers. Wells Fargo says it is doing everything in its power to help customers during COVID-19, such as offering credit deferrals to customers affected by the pandemic, but it will no longer work with independent traders with whom it has no “deep, long-standing relationship,” the company said in a statement sent to Car and Driver.
If you received your loan directly through Wells Fargo (unlike a reseller), call us at 1-800-559-3557, Monday – Friday, 8:00 a.m. to 6:00 p.m. local time to request a payment deadline. We`re here to help you every step of the way, from helping to improving your operational efficiency to achieving your financial goals. We buy qualified retail contracts and serve customers` auto credit accounts from start to finish. Your success is our conclusion. If you purchased additional products with your vehicle, z.B. Guarantee-Asset Protection (GAP) or Credit Insurance, please read the product agreement for information on the impact of the coverage.