- A consumer finance company is a type of financial institution. These financial companies loan money to consumers who cannot otherwise gain bank financing.
- Consumer finance companies function as a lending resource to people who cannot find other financing. Because of this they became heavily involved in the sub-prime loans of the early 21st century.
- Consumer finance companies were highly independent in the United States up to the last decade of the 20th century. Once banks began realizing the profitability of consumer finance, most of these companies were bought up.
- Most consumer finance companies do not require a license to operate if the operator does not charge a per annum interest rate of over 18 percent. Most states do not classify charitable loans or pawn brokers as consumer finance companies under law.
- Consumer finance companies offer a more personable lending experience to consumers with less stringent lending guidelines. These companies also allow more people with less than perfect credit to apply for favorable credit terms.
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