Exeter Finance, a consumer lender that specializes in dealership financing and subprime auto lending, is subject to stringent compliance requirements due to their large loan volume and needing regular chart of accounts additions and reconciliations across more than 90 bank accounts at period close.

Exeter may promise consumers help, yet many borrowers experience financial surprises when using its loans and extensions.

1. They are not a direct lender

Reaching out to Exeter Finance can be both time consuming and frustrating, with representatives often failing to address customer needs or offering generic responses that do not address their unique circumstances. This is especially evident when it comes to auto loans where many borrowers report receiving poor customer service and excessive interest rates on their loans from Exeter Finance.

Customers of Exeter Finance have complained that its practices are illegal and that they were treated unfairly, including repossession of cars that may cost thousands to return, loan terms that are too long, and excessive interest rates charged.

Exeter Finance, one of the nation’s premier auto lenders, specializes in high-interest loans for people with poor credit. They advertise themselves as offering second chances; giving customers access to used cars they might otherwise not afford if their financial circumstances change. But Exeter Finance’s business model relies heavily on failure: They frequently grant extensions that add thousands in new interest charges to each borrower’s debt burden.

Federal law forbids lenders from engaging in unfair, deceptive or abusive acts. In 2018, the Consumer Financial Protection Bureau took action against Santander Consumer USA for similar practices; however, no such action has been taken against Exeter yet.

2. They are not a bank

Many people with poor credit have used Exeter Finance to purchase cars at competitive interest rates, yet its high interest rates can lead to significant debt loads that force repossession of vehicles after several months of nonpayment and fees of thousands of dollars for return of each one. If you’re having difficulty paying back Exeter Finance loans, help may be available from debt settlement services like SoloSettle.

Exeter Finance works with thousands of auto dealerships and offers loans to people who do not qualify for car loans through banks. Their aggressive practices, which include higher interest rates than other lenders and extended repayment schedules, prompted action against Santander Consumer USA by the Consumer Financial Protection Bureau; but Exeter was left alone; even with its deceptive marketing practices used to lure borrowers in by Exeter Finance, no such action has yet been taken by them.

After several months of nonpayment, Exeter often seizes and reposesses the car before passing it off to a collection agency for bill payment. According to regulatory records, Exeter makes more money on these loans than on those paid back on time.

3. They are not a credit union

Exeter Finance is a subprime lender specializing in auto loans for people with poor credit. Their business model relies on aggressively extending loan extensions, often adding thousands of dollars worth of interest charges that the borrower cannot afford and attracting the attention of state regulators.

Matthew Hutchinson contacted his local attorney general after being rear-ended on a highway in early 2022, expecting that his insurance payout would cover everything still due on his Exeter loan. But Exeter had granted multiple extensions of time, so when his final payment came due it was nearly $14,000 higher than expected.

When reaching out to borrowers who are behind on payments, the company often doesn’t clearly explain how extensions will impact them despite federal laws requiring disclosures of this kind. Furthermore, they don’t inform borrowers that when they resume repayment they’ll only have to pay the interest accrued during a deferment, rather than any original principal balance balance due.

Exeter Finance stands out as being among a select group of lenders who earn more from loans that default than from those paid on time, according to state and federal records and interviews with experts. This has drawn the ire of consumer advocates and attorneys; additionally, doxo (an app for secure bill payment) does not recommend Exeter as one of its loan options to users.

4. They are not a debt consolidation company

Exeter Finance offers high-interest car loans to people with poor credit. When their payments fall behind by more than three to four months, Exeter repossess their cars. They also allow borrowers to defer payment arrangements for up to six months but when this occurs it typically adds thousands in interest charges onto a borrower’s debt without providing full disclosure of these costs to borrowers.

Exeter Bank’s practice of offering payment extensions has caught the attention of state regulators in at least three states and led to a lawsuit by Pennsylvania Attorney General Josh Shapiro; however, their settlement did not contain any admission of illegal behavior.

Deferring payments may seem like an ideal way to protect their vehicles from repossession, yet regulatory records show otherwise. Borrowers typically end up making additional payments towards making up what was owed before being forced back onto an original loan, only for Exeter to reclassify it as on schedule after each extension period ends and reclaims possession of them anyway.

Matthew Hutchinson of Washington state was among those whose efforts were ultimately in vain. When he called Exeter customer service inquiring about an auto reprieve after being involved in a rear-end collision that sent his truck over the center median and into oncoming traffic, they simply moved his December and January payments two months earlier – adding two extra months altogether to his five year payment plan.