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Life of a Loan
 

Life of a Loan

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    Life of a Loan Life of a Loan Document Transcript

    • Life of a Loan A guide to understanding AmeriCredit operations A guide to understanding AmeriCredit operations | 
    • E TL TI 3 15 5 CONTR ACT Customer pays off 13 SPEC IALTY AREA S ER AmeriCredit contract N SUM 4 CO COL 11 LECT ION S Agre Deale ent APPROV em ED r R ALE DE Bi llin ER g Sta ME 2 TO IC T t eme AC 14 nt TR CON S V CU ER S 12 1 7 10 RE MANCORDS AGEM G 9 EN IN NS T D 6 O N P TI FU E E XC Cr ed it Ce nt Welcome! er 8 TI MA TL IL IN T AC NTR Arlin G CO Ope g ratio ton Life of a loan ns C ente r 1. The start of something good 5. Sealing the deal 8. Creating and maintaining 11. Processing payments 14. Maximizing recovery, Building strong dealer An agreement is made; customer customer’s account AmeriCredit processes customer reducing losses relationships. signs the contract. Customer’s account is created payments daily. At auction, we seek top dollar for when the contract is funded. all repossessed vehicles. 2. The AmeriCredit customer 6. Checks and balances 12. Helping our customers Customer shops for a vehicle. The contract is examined; a 9. Receiving the title Customer service resolves 15. Additional recovery efforts confirmation call is made. Lien is perfected; title is received. account issues and answers If a total loss occurs, efforts are 3. Looking for a lender questions. made to locate and recover the Dealer selects AmeriCredit as one 7. Funding our dealers 10. Storing the contracts vehicle and collect the remaining of its lenders. If there are no exceptions, dealer All critical documents are securely 13. Collecting past-due balance. is funded. If exceptions exist, stored. payments 4. Examining the application contract is reviewed and issues If the account is delinquent, AmeriCredit approves or declines are resolved. collection efforts are made. the application.
    • Life of a Loan People from all walks of life – doctors, engineers, grocery store clerks, bankers, beauticians and homemakers – need vehicles to get from place to place. Some have excellent credit histories; others may have fallen on hard times, perhaps the result of divorce, escalating medical bills or job loss. However, whether it’s getting to a job, picking up groceries or carpooling with the kids, people have a need for transportation. Enter AmeriCredit. Founded in 1992, When consumers borrow money, it is AmeriCredit Corp. is a leading indepen- typically called a “loan.” In fact, for dent auto finance company headquartered simplicity’s sake in describing our business, in Fort Worth, Texas. We build relationships we’ve named this publication “Life of a with auto dealers and customers so we Loan.” But, it’s a little more complicated can better understand their auto finance than that. AmeriCredit’s primary source of needs and create solutions to meet them. business comes from purchasing “retail AmeriCredit provides financing solutions installment contracts” from auto dealer- indirectly through auto dealers across the ships, rather than being contacted directly United States. by the consumer to obtain a “loan.” Throughout these pages, we’ll illustrate the process of obtaining a “loan” from AmeriCredit – from the customer’s initial visit to the dealership to AmeriCredit’s purchase of the contract, customer service, collection efforts and, finally, to a customer paying off his or her contract and receiving the title. AmeriCredit serves approximately one million customers. And, throughout the company’s history, we’ve helped millions of other customers get to where they’re going. Here’s how we do it … A guide to understanding AmeriCredit operations | 
    • » The customer makes about $5,000 per month in gross wages. » He or she has 13 years of credit history documented with the credit bureaus. Risk » He or she finances about $18,000 with AmeriCredit. ManageMent: » The customer’s typical loan term is AmeriCredit specializes in “subprime” around 68 months, or nearly six years. auto financing and assumes risk on the » He or she makes a $410 payment to contracts we book. Our Risk Management AmeriCredit each month. department consistently evaluates credit After selecting which vehicle to purchase, risk on all applicants. Based on projected the customer sits down with the dealer and losses and profitability targets, pricing negotiates. Once they agree on the price of the guidelines are set for each contract. 1. The start of car, the loan application process begins. Doing so enables AmeriCredit to something good purchase contracts from consumers with Strong relationships form the foundation 3. Looking for a lender varying credit histories while protecting of AmeriCredit’s business. We focus on AmeriCredit’s profitability. Most automobile dealers pull their customer’s communicating effectively and developing trust credit bureau files as the first step to securing with all our customers – both auto dealers and The Risk Management team looks into the financing. Before submitting a credit application past to predict the future. Analyzing both consumers. Through the relationships we build, to potential lenders, the dealer narrows the pool we are able to understand our customers’ auto successful and charged-off loans, they of finance companies by studying the customer’s develop AmeriCredit’s custom scorecards. finance needs and create solutions to meet financial history. AmeriCredit educates the dealer those needs. Our sales representatives across Because AmeriCredit has worked in the early-on regarding what types of contracts we subprime auto financing industry longer the United States make frequent business look for. This enables him or her to match each visits to dealerships to educate them about than most of our competitors, our custom customer with an appropriate lender. scorecard gives us a definite advantage AmeriCredit’s programs and the types of financing we offer. In addition, the employees in that has been tracked and proven over our network of credit centers offer flexibility and time. To maintain that advantage, the excellent service to our dealers. As part of that collective data that makes up our custom commitment, if a dealer calls the credit center scorecard is closely guarded as proprietary with a question, a person – not a machine company information. – answers the phone. Here’s How we use AmeriCredit seals the relationship with its dealers through a written agreement, which sCoreCArds outlines business terms and expectations. After accepting the terms and executing the dealer » For each credit application submitted agreement, dealers may submit their customers’ to AmeriCredit, information from credit applications and contracts to AmeriCredit. different sources – past credit history, application and loan structure details 2. Who is our customer? Most dealers submit applications to AmeriCredit – is entered into our scorecard. We receive most applications from automobile through one of several Web-based platforms, » The automated system then assigns dealers who select AmeriCredit as their including DealerTrack and RouteOne, which a probability of default to the lender of choice and submit consumer credit automate and accelerate the financing process. transaction. applications to us. However, it’s ultimately These portals offer dealers credit report access, the customer who signs the auto finance processing of credit applications, electronic » The assessment of risk for each contract and makes a monthly car payment to contracting and other helpful management tools, applicant is presented to the AmeriCredit. such as allowing the dealer to track application underwriter as a numerical score. and contract status. » The score helps dictate whether Like any day-to-day transaction, the customer AmeriCredit will consider purchasing goes shopping, only this time it’s on a larger 4. In or out? AmeriCredit this contract and on what terms. scale. A customer’s auto loan debt is typically examines the application the largest monthly payment commitment he or she has, second to a rent or mortgage payment. AmeriCredit’s system examines data about the customer and the proposed deal, such as the AmeriCredit’s primary focus is meeting the auto customer’s employment history, credit bureau finance needs of middle-market consumers. So information and score, income and residence what does the average AmeriCredit customer information, the year, make and model of the look like? Here are some statistics: car being purchased, loan amount, payment amount, and length of the contract. The system » He or she has kept the same home address for around seven years and electronically combines the data with internal retained the same job for seven information from our Risk Management years. department to arrive at AmeriCredit’s “custom” A guide to understanding AmeriCredit operations | 
    • credit score. (See “Risk Management” sidebar Once the dealer and the customer reach an » A decision can be made to return on page 4.) If the score is below a lower agreement, the customer signs a legally binding the contract to the dealer without threshold (also known as the “cutoff score”), the contract as a promise to comply with the deal’s funding it. application is automatically declined. terms. The dealer then assigns this contract to If the representative discovers an exception AmeriCredit. that appears to violate our written agreement If the final figure is above the threshold, an with the dealer, FundsNow will investigate AmeriCredit underwriter decides whether to 6. Checks and balances the situation and decide whether to fund the approve or decline the application. Often, contract. However, if a contract has already been the underwriter will conditionally approve an Under our FundsNow department, based on funded, AmeriCredit’s Credit Review team will application provided that additional stipulations, the degree of risk, the Funding team conducts a conduct the analysis, which could result in a or “stips,” are met. For example, the underwriter comprehensive review of the entire auto finance “buyback,” or repurchase of the contract by the may feel comfortable with the deal only after transaction before disbursing funds to the dealer. dealer, saving AmeriCredit from a potential loss. confirming the customer’s income. In that case, After the details of the finance contract are entered into our computer system, a Funding he or she would request a recent pay stub as specialist reviews the contract and accompanying 7. Funding our dealers evidence that the salary listed on the application is correct. documents to identify any discrepancies related Even before receiving the original contract to the credit decision. Did the customer sign the documents, the Funding Administration team is The underwriter then sends the dealer details contract? Do the year, make and model of the fast at work reviewing each contract and other of his or her decision along with AmeriCredit’s vehicle on the contract match the information critical document images required for funding. “buy rate,” payment amount and length of the on the approved application? Did we receive all The team is able to view the contract images on contract. Generally, the terms of the contract are required “stips,” if needed, such as copies of a a companywide electronic imaging system. This based on the customer’s credit history. house deed or recent pay stub? centralized group checks for state and federal regulatory requirements, as well as appropriate Next, the representative verifies the customer’s lien perfection documents. If requirements are employment and car insurance information met, the contract is funded, and the contract by calling his or her workplace and insurance is assigned an account number. If critical provider. He or she also scrutinizes the authenticity information is missing, such as signatures or of documents we received to fulfill a stip. ancillary product information, it must be resolved before the dealer can be funded. Funding Once the contract package review is complete, Administration conducts a follow-up with dealers the representative calls the customer to verify to resolve many of these outstanding exceptions. final contract and vehicle information and welcomes him or her to AmeriCredit. During the After funding, every original contract passes conversation, the payment schedule is confirmed, through the Compliance department to verify and AmeriCredit’s customer service number is that the original paperwork is consistent with provided in case the customer has questions. digital images used for funding the deal. It The representative also uses this time to confirm also reviews and validates state and federal 5. Sealing the deal pertinent information about the customer, disclosure deficiencies identified by the Funding vehicle and contract. Sometimes, we discover Administration team, ensures there are no AmeriCredit’s offer is on the table, and we’re discrepancies about the deal that would have additional deficiencies and notifies the customer ready to close the deal. First, our underwriter otherwise gone unnoticed. If the confirmation appropriately. calls the dealer to verify his or her receipt of call reveals no new issues to address, the our decision. We want to know if the customer contract package is submitted to the Funding For more information on how we obtain capital accepts the terms we have negotiated with the Administration team for processing and funding. to fund our dealers, see “Understanding dealer. Here’s how the conversation might go: Securitization” on page 6. Any discrepancies uncovered during the ameriCredit: We approved your deal for verification process must be resolved before Joe Smith at 16.85 percent for 60 months. funding. These discrepancies are usually very minor How does that look to you? and easily resolved. Let’s say the representative learns that a customer’s monthly income is $500 Dealer: That makes the customer’s monthly lower than what was stated on the application. payment too high. He needs it to be about Although the contract still meets AmeriCredit’s $410. scoring requirements, the customer’s debt-to- ameriCredit: Well, I can’t lower the income ratio now exceeds the representative’s interest rate, but with an additional $1,000 approval authority. We have three options for this down; the monthly payment is $410. discrepancy: Dealer: We should be able to do that. » An AmeriCredit underwriter can work through the dealer to find out if the ameriCredit: Sounds good. Then it’s customer has any additional income 16.85 percent for 60 months with an sources. This will lower his or her debt- additional $1,000 down payment. to-income ratio. Dealer: Yes, it’s a deal. » A senior leader with higher approval authority can waive the exception. All exceptions are tracked and limits are imposed. A guide to understanding AmeriCredit operations | 
    • Understanding Securitization Securitization is a big word often heard at AmeriCredit, but it still produces a puzzled look on many faces. While it’s not considered a direct step in the “life of a loan” process, the act of securitizing plays an essential role in financing our business. The Structured Finance team ensures the company has access to additional capital by creating and maintaining various funding mechanisms to which recently originated loans are transferred. This additional capital is used to fund the purchase of new loans from auto dealers. Why does the company securitize? A finance company has several funding sources available to obtain the necessary capital to run its business. These sources include deposits, bank loans, issuing corporate stock or unsecured bonds and, finally, asset- backed securities (securitizations). While AmeriCredit obtains capital through the issuance of corporate stock and unsecured bonds and also utilizes bank loans, its primary source of funding is securitization. The securitization market allows AmeriCredit to raise large amounts of capital at costs that allow us to maximize “net interest margin” for the life of the loans. Here’s how securitization works: How do the investors get paid? 1. Contracts are originated by AmeriCredit Financial a. Each month, AmeriCredit’s customers make Services, Inc.* payments on their auto loans. AmeriCredit receives a fixed amount of money: 1) loan 2. We then package together a pool of contracts principal and 2) the interest portion of the customer’s that we originated over a period of time. payment. These monthly payments are submitted directly to The bundled contracts are transferred to a bankruptcy- the ABS trust. remote Special Purpose Entity (SPE), which in turn transfers the contracts to a bankruptcy-remote Asset-Backed b. The ABS trust uses this monthly cash flow Securities (ABS) trust. from AmeriCredit’s customers to repay the bond investors. 3. The ABS trust becomes the permanent home for The investors receive a monthly payment: 1) principal (to the contracts. repay the borrowed money) and 2) interest, or coupon, which is the interest rate paid on the bonds. 4. The ABS trust uses the loans as collateral for corporate bonds that are sold to investors. c. AmeriCredit earns (or receives) the net interest The trust uses the proceeds from the sale of the bonds to margin – which is the difference between the pay the company for the loans that were transferred to the interest rate that our customers pay on their auto trust. Bonds backed by the expected payments on a pool of loans and the interest rate paid to the investors. assets (such as auto loans or student loans) are known as For example, the securitization named 2007-D-F has an asset-backed securities. The transaction itself is referred to average customer interest rate of 16.9 percent, but we as a securitization. are only required to pay the investors approximately 5.5 percent. Therefore, AmeriCredit will earn a 11.4 percent net interest margin (16.9 percent minus 5.5 percent) on these loans before covering credit losses, operating expenses and In between securitizations, the company utilizes any fees associated with the securitization. warehouse lines of credit (bank loans) for short-term financing. This allows us to have cash on hand every day Utilizing a securitization locks in the net interest margin for the company for the entire life of the securitization, to purchase contracts from dealers and provide funding removing exposure to changes in interest rates for these to them. The process of transferring bundled contracts specific loans. to a Special Purpose Entity and then to the warehouse trust is identical to the process involved during a As net interest margin is generated, cash is available to securitization. the company to cover operating costs, credit losses and taxes. Anything left over is AmeriCredit’s profit. This can be reinvested in new loans. Then, we start the cycle again – originating new loans, funding our dealers and *AmeriCredit Financial Services, Inc. (“AmeriCredit”) is a wholly-owned, and the primary transferring loans to warehouse lines or securitization trusts. operating, subsidiary of AmeriCredit Corp., a Texas corporation, the common shares of which are listed on the New York Stock Exchange. A guide to understanding AmeriCredit operations | 
    • Understanding Securitization Here’s how it works. The ABS trust uses the loans as collateral for corporate bonds that are sold to investors. 4 3 The ABS trust becomes 2 the permanent home for 1 Contracts are originated AmeriCredit takes the the contracts. by AmeriCredit. contracts from the warehouse, bundles them and transfers them to a Each month, bankruptcy-remote Special AmeriCredit’s Purpose Entity (SPE), customers which in turn transfers the make payments contracts to an Asset- on their auto Backed Securities (ABS) loans. trust. a b The ABS trust uses this monthly cash Maintaining a strong capital position flow from to fund our business is important. AmeriCredit’s customers to repay the bond Contracts are purchased every day from dealers investors. across the U.S., and AmeriCredit must be able c to pay them. Having cash available at all times AmeriCredit earns (or receives) the net is made possible through a process called interest margin – which securitization. The map on this page illustrates is the difference between the interest rate that our that process. From originations, to selling customers pay on their securities to bond investors, to cash flow from our auto loans and the interest customers’ payments, it’s a continuous cycle that rate paid to the investors. keeps AmeriCredit’s business going day after day. A guide to understanding AmeriCredit operations | 
    • 8. Creating and maintaining operating results and cash flow. Three key 12. Helping our customers functions within the Finance department are the customer’s account responsible for processing a customer’s payment When an AmeriCredit customer has a question, A customer’s account is created as soon as – payment processing, exception processing and request or unresolved issue regarding his or her the contract is funded. Throughout the life of a cash management services. account, the Customer Service team is there to contract, many accounts will never be touched, provide respectful, knowledgeable and helpful except for posting payments to that account. Once an account is created, a billing statement service. It assists customers whose accounts On the other hand, if an account requires is sent to every customer each month. When are current or less than 20 days delinquent maintenance or monetary changes such as a a customer submits his or her payment to (depending on the account status). Nearly half of deferment, due date change, charge-off, or name AmeriCredit, he or she is sending it to a lockbox all calls are related to payments. change, the Account Maintenance team will in the United States or in Canada (for Canadian record the change on the account. customers) for processing. The automated Utilizing both English-speaking and Spanish- process of posting payments to our customers’ speaking representatives, Customer Service accounts occurs nightly. handles the following inquiries, along with 9. Receiving the title various other issues that customers request Even though a contract has been funded, before Various exceptions that must be handled help with: it can be considered complete, the title and lien manually include loan payoffs, payments sent by perfection documentation must be received. a customer to a location other than the lockbox, » Payoff quotes The Collateral Administration team makes sure proceeds from vehicles sold at auction and » Lien release assistance that all liens are perfected – naming AmeriCredit payments from insurance companies. as the lien holder – and verifies that all titles are » Credit reporting inquiries received and correct. If not, the team works with The Finance team also manages the cash flow of » Due date changes state and governmental agencies, dealers, and, the business, making sure any excess funds from » Insurance repair issues in some cases, customers to resolve outstanding customer payments are invested according to the issues. corporate strategy and ensuring that we have » Payment information, including Western Union Pay-by-Phone cash available to fund originations. Forecasting transactions 10. Storing the contracts items such as upcoming tax payments is also crucial to balancing cash flow. To learn more » Payment promises that help the AmeriCredit keeps the original, critical about the importance of timely customer customer and meet AmeriCredit’s documents, even though these documents can payments and cash flow to our business, see business needs be accessed via digital images through the “Understanding Securitization” on page 6. companywide electronic imaging system. Non- » Deferment information and assistance critical documents are shredded and destroyed in » Online payment information compliance with policy. In addition to the English and Spanish online A fireproof vault stores and safeguards millions self-help that customers can obtain through of critical documents like titles and original www.americredit.com, an online Customer contracts. The Records Management department Service team responds to all inquiries and ensures the safekeeping of more than one million technical questions received via e-mail. customer files. Various groups within the Consumer Services 11. Processing payments and area also rely on an additional team, Customer managing cash flow Service Support, for assistance with processing customer correspondence and other issues, In an effort to receive payments from our such as: customers, we send each of them a monthly billing statement. Timely payments are critical to » The Servicemembers Civil Relief Act company performance, which leads to positive (SCRA) » Disputes filed by a customer about his or her credit bureau file » Authorization to travel out of the country » Assistance with first payments received at the credit center | 
    • » Vehicles are transported to the appropriate auction. » Title work is completed. MAXIMIZING » Sale dates are coordinated with the RECOVERY, auction. REDUCING LOSSES » Vehicles are reconditioned and If an AmeriCredit customer’s account becomes represented on the auction’s assigned 120 days past due or the vehicle is involved in sales day. an accident and/or the collateral is not worth AmeriCredit participates in auctions where dealer repossessing, the account goes to one of our representatives attend and bid on inventory Specialty Areas. They try to recover the vehicle from financial institutions, rental car companies, and/or a remainder of the deficiency balance. manufacturers and other dealerships. AmeriCredit’s traveling auction sales team represents more than 98 percent of all 13. Collecting past-due AmeriCredit vehicles offered at nearly 40 auctions per month across the United States and payments Canada. These representatives make sure the While the majority of AmeriCredit customers auctions comply with established AmeriCredit make regular, on-time payments to their standards pertaining to the reconditioning of accounts, some find themselves in unexpected vehicles and are responsible for making the situations – such as dealing with a job loss, final sale decision. Historically, approximately 40 divorce or unexpected medical bills – that make percent of the balance owed on a vehicle has it nearly impossible to make timely payments on been recovered at auction. their vehicles. After the sale of a vehicle at auction, if a When an account becomes delinquent and deficiency balance exists, the amount is is more than five days past due, it is sent to calculated, a notification is sent to the customer, AmeriCredit’s Collections department. This team and we continue to try to recover that remaining helps customers make payment arrangements to balance. (See step number 15, Additional bring their accounts current. recovery efforts.) Collections is composed of two separate groups The company also generates additional proceeds that handle accounts based on the amount of each month through the collection of ancillary time the account has been delinquent: 5-45 days product refunds on vehicles that have been delinquent or 46+ days delinquent. repossessed or are a total loss. (See definition of “total loss” on page 10.) For example, after The teams that handle 5-45 days past-due repossession, we request refunds from dealers accounts utilize technology to optimize call or insurance companies for the unused portions volumes and call quality, allowing them to of products included with the contract, such as effectively work large volumes of accounts. The warranties, credit life insurance or Guaranteed 46+ teams concentrate on smaller numbers of Auto Protection (GAP) insurance. accounts, since the customers’ accounts are in a more critical state. They then retain the account until payments are received or the collateral is 15. Additional recovery efforts repossessed and the account is charged off. The Loss Recovery and Loss Mitigation departments are composed of several specialized 14. Recovering teams that handle a variety of accounts based on dollars at auction the account’s status. If the Collections department determines that When a vehicle is impounded or seized by a the collateral must be repossessed, the account governmental unit or body shop or is destroyed is sent to the Asset Remarketing department, in an accident, the account is routed to Loss which is responsible for maximizing recovery Mitigation for special handling. and reducing losses on repossessed vehicles. AmeriCredit attempts to recover as much money impounds – If a vehicle has been as possible by simultaneously selling repossessed impounded, the Impound group contacts vehicles at auction and in real-time via the the customer to find out why the car was Internet. To do this, Asset Remarketing must impounded and to obtain a current status ensure: on the vehicle. Then, it negotiates with the state/federal agency, body shop or other » A post-repossession notification is entity to release the vehicle from impound if sent to the customer. it is economically viable to do so. A guide to understanding AmeriCredit operations | 
    • total Loss – If a vehicle has been deemed charged off, the Non-Collateral Recovery a total loss (i.e., the vehicle is involved in team continues collection efforts on the an accident and the insurance company account’s deficiency balance. Oftentimes, deems the car irreparable), the Total Loss we negotiate arrangements to report the group assists the customer in his or her account as “settled” with the credit bureau negotiations with the insurance company if the customer is willing to pay a portion of to obtain funds to pay off or pay down the the deficiency balance. If this team is unable balance on the account. If the insurance to resolve the account, the account may be settlement is not sufficient to pay off the assigned to a third-party collection agency or balance of the loan, Total Loss works with sold to another company. the customer to ensure payments continue on the account until the balance is paid in third-Party Liaison – Also part of the full. This group also assists customers who Loss Recovery department, the Third-Party want to use the proceeds from the insurance Liaison group maintains strong business settlement to purchase another vehicle and relationships with external collection have it financed by AmeriCredit. agencies and law firms, all of which are important in maximizing the recoveries on expired loans – If a loan has reached its charged-off accounts. contractual term (i.e., 60 months, 72 months, etc.), it is considered “expired.” However, Loss Recovery also handles impounded and there may still be a balance on the account total loss accounts after the account has been from interest accrued from late payments. charged off. In addition, this group is responsible This remaining balance continues to be for processing any claims under GAP insurance collected by AmeriCredit and may result protection purchased by the customer as part of in hundreds or thousands of dollars being the contract. recovered from an account. If a customer files a bankruptcy petition, the Once an account is charged off, it moves from account is immediately sent to the Bankruptcy the Collections department to Loss Recovery for department. handling. Bankruptcy – The Bankruptcy Collateral Recovery – After an account department’s objectives are to recover is charged off as a result of non-payment money, cut losses and protect collateral, and the vehicle cannot be located, the while ensuring compliance with bankruptcy account is sent to Collateral Recovery. This laws. It is responsible for the account until team utilizes various research tools in an the bankruptcy is completed or the loan is attempt to locate and recover the vehicle paid off and the account is closed. We are or reach a settlement with the customer to prevented from making any collection efforts resolve the account. on an account in an active bankruptcy case. If the bankruptcy court gives AmeriCredit non-Collateral Recovery – If a permission to repossess the vehicle, it is sold customer no longer possesses the vehicle at auction. (either because of a repossession and sale by AmeriCredit or because of the destruction of the vehicle) or the vehicle is simply not worth repossessing and has been PORTfOLIO Analyzing the data we have available is an important driver of our servicing strategies as after the contracts are on our books. It continually tests and analyzes servicing ANALYSIS kEEPS AmeriCredit continues to seek more efficient and effective ways to operate our business. and collection strategies for our portfolio to determine which methods US ON TRACk With the vast amounts of information we have access to, we can determine things assist our customers while allowing us to maximize our profitability. This team as simple as what time of day to collect also measures the potential impact of on certain accounts and why accounts changes in our credit strategies and originated in different markets perform changes in the external environment on better. The Portfolio Analytics department our credit results. plays an important role in our business A guide to understanding AmeriCredit operations | 0
    • Corporate teams There are many other teams throughout Accounting, Treasury & facilities AmeriCredit that play a vital role in the company’s Timely, accurate reporting of AmeriCredit’s financial information is not only important success, even though they may not be directly to the company from an internal perspective, but is also required by the Securities and related to the life of a loan. From selecting the best Exchange Commission (SEC) and watched closely by our investment analysts and team members to keeping our systems running shareholders. This is where the Accounting department comes in. This group is smoothly to handling payroll and legal matters, responsible for AmeriCredit’s financial reporting, accounts payable and tax administration functions. But the entire AmeriCredit team is responsible for Accounting does more than just keep the books; it also monitors employee business expenses and ensures that AmeriCredit gets the best deals from completing our mission: To create value for our outside contractors by managing vendor relationships. stakeholders by constantly improving our services, Our Facilities department is also tasked with managing all current or potential AmeriCredit office space by keeping our facilities professional, investing in innovative solutions and information- safe and comfortable. Along with maintaining our facilities, this team ensures that all AmeriCredit mail is sent, processed, handled and delivered based strategies, and promoting a culture of through the same audit and compliance procedures as our other business functions. teamwork, excellence and integrity. Communication & Investor Relations On these remaining pages, we’ve outlined the Facilitating the flow of timely information between AmeriCredit and its key various teams that support cross-functional areas stakeholders is the primary role and responsibility of the Communication throughout the company. and Investor Relations department. This department works to manage relationships with external customers while also keeping the lines of communication open with team Mission Statement members. “To create value for our stakeholders by constantly Investor Relations handles relationships with investors and stock analysts, and other public constituents – news media, dealer customers and improving our services, investing in innovative solutions consumer customers. Internal Communication oversees AmeriCredit’s newsletters, intranet site, companywide e-mail messages and other and information-based strategies, and promoting a culture special publications for team members. Whether it’s internal or external communication, this team ensures that all messages are consistent and of teamwork, excellence and integrity.” representative of the AmeriCredit brand. A guide to understanding AmeriCredit operations | 
    • Community Investment Information Technology Improving and strengthening the communities Innovation is one of the founding principles of in which we live and work is the goal of AmeriCredit’s corporate culture. At the forefront AmeriCredit’s Community Investment of cultivating that ideal is the Information department. It provides team members with a Technology (IT) department, which manages corporate-supported forum for becoming more all aspects of AmeriCredit’s vast information active in their local communities. Among other systems. From planning, software development benefits, team members receive paid time off for and testing to providing technical support for the volunteer work. The entire AmeriCredit team is final software platform, IT focuses on offering encouraged to participate in local programs or customer-oriented service and support. Because support the philanthropic organizations selected our company routinely handles sensitive, timely as AmeriCredit’s “Signature Events,” for which information, all we provide corporate sponsorship. elements of our systems must work together Human Resources seamlessly to maximize the flow Whether you’re new to AmeriCredit, a current of information that team member seeking new opportunities or a allows our team manager looking for additional information, members to do you’ve come to the right place: the Human their jobs. Resources department. This group manages areas related specifically to employees, such as hiring team members; overseeing employee health benefits and stock ownership programs; managing the review and compensation process; facilitating training and development; and administering corporate policies. Legal Access to legal support tailored to our business is critical to protecting AmeriCredit’s interests. Our Legal team is specifically trained in the areas its advice impacts most: dealer, consumer and corporate services. If legal action is taken by or against AmeriCredit, the Legal department manages all litigation processes. Additionally, our knowledgeable attorneys and paralegals keep our company in compliance with government regulations, mandatory licenses, and state and federal laws. Internal Audit & Security The primary role of the Internal Audit department is to assist the Board of Directors, Audit for more information Committee, Executive Team and management in For more information about achieving sound managerial review and control AmeriCredit, visit our Web site at www.americredit.com or send an over all activities. Through comprehensive reviews e-mail to investors@americredit.com. and independent appraisals of all operations and activities, it makes sure the company’s strategic Investor Relations initiatives are accomplished while adhering to Caitlin DeYoung: 817-302-7394 company policies, federal and state regulations, and generally accepted control standards. AmeriCredit’s Security team is dedicated to protecting our people, intellectual property, assets and customer confidence by providing a safe work environment and ensuring the availability, integrity and confidentiality of information. A guide to understanding AmeriCredit operations |