Subprime Lenders Facing Bankruptcy
April 28, 2018, 11:03 a.m.
Subprime lenders are beginning to feel the pinch economically, and that includes Summit Financial Corp., Spring Tree Lending, and Pelican Auto Finance.
Summit Financial Corp. filed for bankruptcy last month. My experience has always been that a large portion of my bankruptcy clients have auto loans with Summit Financial which is based out of Florida. Bloomberg had previously reported that Summit has been misreporting its losses and Spring Tree Lending which is also in bankruptcy, was accused of fraud by its investors.
What the Future Holds for Subprime Lenders
Experts believe unlike subprime lending in the mortgage industry, because the losses are smaller and the market overall is smaller, the Great Recession between 2007-2009 is unlike to repeat itself, but only time will tell if that holds true.
Alexander Hernandez, Esq.
Alexander is a bankruptcy attorney practicing in Jacksonville/Duval County, and Miami, Florida. He is also the author of numerous books. His Author Page is available below.