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Subprime Lending Woes Wipe Out Patelco's '06 Profits; Starting to Recover

Patelco Credit Union decided it had enough and chose to stop digging when it availed itself of the opportunity to sell its subprime auto portfolio and investment in ACC Consumer Finance, LLC of Laguna Niguel, California.

By Staff Writer | Updated on August 14, 2007

SAN FRANCISCO — Patelco Credit Union decided it had enough and chose to stop digging when it availed itself of the opportunity to sell its subprime auto portfolio and investment in ACC Consumer Finance, LLC of Laguna Niguel, California.

Based on a review of the 5300 and information provided by Chris Oldag, senior vice president of lending for the $4 billion Patelco, the CU sold its approximately $235 million portfolio and its nearly $1 million CUSO investment in ACC to CompuCredit for $195 million. That provided the CU with an exit strategy for a poorly performing subprime auto lending business. Oldag now says that Patelco no longer has any ACC loans.

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