Exeter Finance provided loans to borrowers with lower credit scores, extended their repayment schedule beyond six years and charged the highest rates available to subprime lenders in the industry.

Many consumers, like Patterson, filed complaints with state attorneys general; however, regulators often failed to press Exeter for specifics, leading them to remain unaware of how much of their payments went toward interest and how to track this amount accurately.

1. Credit Score

Exeter Finance generally requires an average credit score of 762 to obtain an auto loan, though loans can still be obtained with scores as low as 620. Furthermore, they typically only require a deposit payment of $2,000 or less–significantly lower than most lenders.

Exeter Finance’s low credit requirements notwithstanding, most Exeter Finance borrowers still find it challenging to keep up with payments. Although extensions are offered to those who miss payments and may incur more fees as a result of missed payments; many borrowers also risk repossession; the lender is one of the leading subprime auto loan providers nationwide.

Exeter Bank has come under scrutiny for its lending practices, prompting scrutiny by regulators. In 2022, Santander had to pay more than $12 million in settlement of claims that it harmed consumers through offering subprime auto loans without fully disclosing financial risks; yet Exeter has been left without action from regulators despite annual complaints tripling since five years according to ProPublica and Scripps News reports.

After several extensions, Patterson became concerned she wouldn’t ever be able to pay back her Exeter loan, prompting her to send a letter to New Jersey Attorney General Gurbir Grewal asking him for intervention on her behalf; unfortunately he declined, which left Patterson in danger of having her car taken back by creditors.

2. Income

Ideal car loan payments should allow for rent, utilities and food expenses as well. Your debt-to-income ratio measures this ratio; the lower it is, the better off you are.

When lenders allow borrowers to miss payments, they typically tack on thousands of dollars in additional interest charges when the final installment comes due. This practice is known as balloon payment and can come as quite a shock; many Exeter borrowers reported to ProPublica they weren’t aware of how the company added such charges onto their loans.

Exeter Bank’s business model relies heavily on extending loan terms. While exact details on how many extensions the company grants remain unknown, former employee report handing them out «like candy.» Depending on how many extensions are granted and their total number may influence how much you owe at the end of your loan term.

Each time a borrower extends an auto loan, interest begins accruing again, giving lenders more opportunity to charge it until it falls overdue. According to regulatory records, many borrowers who extended loans could not afford their final payment and their vehicles were eventually repossessed.

3. Loan Amount

As Matthew Hutchinson prepared for an oncoming snowstorm in Washington State in January 2022, his hope was for insurance to cover any damage to his SUV; unfortunately he found himself months behind on his Exeter Finance loan payments and eventually missed them entirely.

Exeter Auto Loans have long specialized in subprime auto loans and since 2010 have grown exponentially to meet growing customer demands. Accepting customers with lower credit scores than before and lending them more money with longer payment plans than their competitors (regulatory records show), Exeter’s loan rates often surpass those offered by its rivals.

At Exeter, each time it grants a reprieve it resets the clock and classifies the loan as being on schedule – but continued charging interest during that period, leading borrowers to repay more than originally borrowed – without clearly disclosing such information to them according to former Exeter employees and company documents reviewed by ProPublica.

Consumers frequently lodge complaints against Exeter to state regulators, yet these offices rarely press it for details regarding its practices. Sometimes they refer the complaint back to its home state regulators without doing more; other times they simply close the case and move onto other issues. ProPublica reviewed more than 200 state complaints filed against Exeter Finance; most involved the percentage of payments going toward interest charges.

4. Down Payment

Exeter Finance, one of the country’s premier auto lenders, partners with thousands of dealerships nationwide to assist people even with poor credit to purchase cars. However, due to high interest rates that make monthly payments expensive and frequent loan extensions that result in large final balloon payments upon loan term completion – often unexpected and leading to financial distress for borrowers – Exeter Finance often attracts strong competition among lenders due to its large lending volumes and loan terms extending for longer than anticipated causing financial pain for many borrowers.

Exeter failed for years to explain clearly to borrowers how extensions could add additional interest charges and postpone loan principal repayment. Exeter did not list exact prices of extensions in written notices sent directly to borrowers, while company scripts required employees to complete calls within three minutes – leaving little time for employees or consumers alike to discuss pricing information during calls with company employees. Consumer advocates and legal experts who reviewed Exeter notices for ProPublica believe this practice undermined Truth in Lending laws while harming borrowers.

Patterson’s Kia was taken back by Exeter Financial in 2021. According to regulatory records, it was one of about 65,000 Exeter-financed vehicles repossessed over time – no obligation exists for Exeter Finance to disclose full numbers, yet publicly available data suggests granting extensions is central to its business model; making more profit on loans which default than on those paid back as scheduled.