Lending Policy: Vehicle Financing

At IRC's Center for Economic Opportunity (IRC-CEO), we are committed to maintaining our client's financial security and trust. To uphold this commitment, we have formulated a comprehensive policy that ensures CEO's interests are protected as a first lienholder on all vehicles financed through our institution. This vehicle financing policy safeguards our investments while promoting responsible lending practices and cooperation between the borrower and IRC-CEO. This policy applied to all secured loan products such as Auto Purchase Loans, Auto Refinance Loans, and Business Loans.

1. First Lienholder Requirement

To fortify the position of IRC-CEO as a trusted and reliable lender, we insist on being listed as the first lienholder on all vehicles financed through our institution. This requirement ensures that in the event of any financial discrepancy, we have priority access to the collateral securing the loan. By assuming the role of the first lienholder, IRC-CEO can more effectively protect our investments and safeguard our financial interests. This requirement is listed on the closing document under an article called "Security."

2. Collateral Listing and Lienholder Position

IRC-CEO ensures transparency and accountability by listing the purchased vehicle as collateral on the signed loan contract. This measure solidifies the agreement between the borrower and IRC-CEO and clearly explains the terms and responsibilities involved. Moreover, the borrower must cooperate with IRC-CEO to perfect the lienholder position on the vehicle title. This collaborative effort ensures that the IRC-CEO's interests are legally protected and that IRC-CEO maintains its rightful position as the lienholder.

3. Handling Title Transfer Issues

In the rare event that the dealer fails to add IRC-CEO as the lienholder on the title upon transfer, we require the borrower to promptly notify us upon receiving the title in the mail. This proactive approach allows IRC-CEO to promptly rectify the situation and maintain the legal documentation to secure our position as lienholders.

4. Prohibition of loan funds as Down Payment

To uphold the integrity of our lending practices, we strictly prohibit using IRC-CEO loans (such as personal loans) or any third-party lender's loan as a down payment for any vehicle financed through CEO. Using a loan as a down payment could lead to financial strain and potentially put you at risk of defaulting on one or both loans. The purpose of a down payment is to reduce the amount you need to borrow and to demonstrate your commitment to the purchase. The down payment must come from your funds, which indicates your ability to save and manage finances responsibly.

5. Consequences of Breach of Contract

Cooperation and adherence to the loan contract terms are of paramount importance. Any failure to cooperate in adding IRC-CEO as the lienholder on the title or any breach of the loan contract will be considered a serious offense. In such cases, CEO reserves the right to request the total loan amount back from the borrower.

IRC-CEO's vehicle financing policy reflects our commitment to maintaining transparency, trust, and financial security for all stakeholders involved. We value our clients and their financial well-being and are dedicated to upholding the highest standards of integrity and professionalism in all our transactions. By adhering to this policy, we can foster an environment of mutual trust and transparency, contributing to our client's financial health and our institution's long-term success.