A proven collateral risk transfer technique used by vehicle lenders to reduce net charge-off up to 18%. Program involves charging a small premium at loan origination, which can be excluded from the APR in most states. This premium is used to reimburse the lender for physical damage on repossessed vehicles or for skips that cannot be recovered.
Miniter group delivers our VSI program with a unique approach that enables rate stability to the lender in both good and bad economic cycles. Using this technique, one of our lenders has maintained the same low VSI rate since 2003 and consistently achieves annual reductions in net charge-offs from 10% to 18%.