DOLLAR FINANCIAL CP
SymbolDLLR

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Dollar Financial Corp Announces Agreement to Acquire Dealers’ Financial Services, LLC

2009-10-28 16:53 ET - News Release


BERWYN, Pa. -- (Business Wire)

Dollar Financial Corp (NASDAQ:DLLR), a leading international diversified financial services company primarily serving unbanked and under-banked consumers for nearly thirty years, today announced it has entered into an agreement to acquire Dealers’ Financial Services, LLC, or “DFS”. DFS is an established business that provides services to military personnel who obtain auto loans in the United States made by a third party national bank. The bank approves the loan application, funds and services the loans, and bears the credit risks. The acquisition, which is contingent upon obtaining financing, is anticipated to be completed in early December.

DFS, which is headquartered in Lexington, Kentucky, was founded in 1996. DFS provides services to military personnel who make application for auto loans to purchase new and low mileage used vehicles that are funded and serviced under an exclusive agreement with a major third party national bank based in the United States. DFS operates through an established network of arrangements with more than 545 franchised and independent new and used car dealerships, according to underwriting protocols specified by the third party bank lender and servicer. The partner third party bank funds and maintains the loan portfolio on its balance sheet, as well as bears any risk of repayment default. DFS’s revenues come from fees related to the loan application, an interest rate spread between the rate the third party lender charges and the rate the borrower pays, and commission fees from the sale of warranty service contracts and GAP insurance coverage.

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