Press
Member auto sales suspends operations
HOUSTON, TX (July 22, 2014) — CU Alliance announced it will be suspending Operations of their Member Auto Sales Division. Member Auto Sales was formed at the height of the U.S. economic downturn, when Credit Unions were experiencing record automobile repossessions and very low sales values at local auctions. The primary function of the operation was to help credit unions reduce charge-offs by selling repossessed autos to the general public.
In the recent past, tighter credit unions lending guidelines have led to fewer repossessions, which had been the primary source of inventory for the operation.
Adrian Dominguez, President and CEO of CU Alliance said: “Along with fewer used cars in the marketplace and greater sales prices realized for repossessed cars sold at auctions, the Member Auto Sales remarketing service has run its course and we have decided to suspend operations on August 31, 2014.”
Originally founded as Credit Union Acceptance Corporation in 1998, CU Alliance, LLC (CUA) is a Credit Union Service Organization (CUSO) that offers multiple loan aggregation services for Credit Unions. Every day Credit Unions compete to retain member automobile and home loans in a very competitive and technologically driven market place. CUA offers Credit Unions a way to respond by leveraging CUSO resources, practices, and technology to help Credit Unions thrive in the consumer lending business.