Is Private Surveillance Behind Crazy Car Loans?

Big Brother Is Repossessing You (Courtesy: Boston Globe/BostonBeta.com)

Big Brother Is Repossessing You (Courtesy: Boston Globe/BostonBeta.com)

There’s been a lot of news about the explosion in auto credit in the US, which now exceeds credit card debt and ranks second only to student debt in non-mortgage consumer credit. Every aspect of auto-backed debt -amount, term length, securitization, subprime availability- has hit new highs recently… except repossessions, which remain relatively low.  And that, say the issuers, bundlers and sellers of auto debt, is what makes the credit class so safe relative to mortgage debt. Because repossessing a car is relatively easier than repossessing a house, bad debts are easier to collect. [Continue Reading]