Credit Acceptance: CAPS Workflow Challenges

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Could you start by giving us some background information about your role and how you interact with Credit Acceptance or other similar entities in your daily activities?

The problem is they (Credit Acceptance) use different book values than we do. So, when we're sending deals across, the book values don't match up. They're using different standards to qualify their customers. I believe that's where the biggest problem with CACC lies.

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So, this applies to those services?

Essentially, CACC gives us a six-month period. If the customer refinances within six months, we get a chargeback. If they keep it past the six months, we don't get that chargeback. Most banks have a 90-day no-chargeback period. CACC is the longest, extending up to six months or 180 days. If there's a way to reduce that chargeback timeframe, I think you would see a lot more deals.

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Initially, you mentioned that it's very easy on chargebacks, or that's why you prefer them. Or did I misunderstand that?

Another main reason we don't use them is the qualification process it uses. When we input the customer's information into Dealertrack, it pushes to CACC. We open up the CACC portal, which is CAPS, and we conduct our deal through there. If there was a way where it could provide us with multiple vehicles to choose from instead of the one it thinks is the best, that would be better.

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