Fewer auto repossessions prompted CU Alliance LLC to suspend its Member Auto Sales Division effective Aug. 31, the CUSO said Monday.
The division was formed at the height of the U.S. economic downturn when credit unions were experiencing record automobile repossessions and very low sales values at local auctions, the Houston-based auto and mortgage lending services CUSO said.
The primary function of the operation was to help credit unions reduce charge-offs by selling repossessed autos to the general public, CU Alliance said.
In the recent past, tighter credit unions lending guidelines led to a drop in repossessions, which had been the primary source of inventory for the operation.
“Along with fewer used cars in the marketplace and greater sales prices realized for repossessed cars sold at auctions, the Member Auto Sales remarketing service has run its course and we have decided to suspend operations on Aug. 31, 2014,” said Adrian Dominguez, president/CEO of CU Alliance.
The CUSO said it serves more than 150 credit unions nationwide.
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