Profile: Regional Management Corp (RM)
15 Jul 2019
Regional Management Corp., incorporated on August 23, 2011, is a diversified consumer finance company. The Company provides an array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. Its products include small loans, large loans, automobile loans, retail loans, and optional payment and collateral protection insurance products. As of December 31, 2016, under small loans, the Company offered small loans ranging from $500 to $2,500 through its branches, which was referred as branch small loans. As of December 31, 2016, under large loans, it offered large installment loans with cash proceeds to the customer ranging from $2,501 to $20,000. As of December 31, 2016, automobile loans were offered in amounts up to $27,500 and were secured by the purchased vehicle. As of December 31, 2016, retail loans were indirect installment loans structured as retail installment sales contracts that were offered in amounts of up to $7,500. Optional Payment and Collateral Protection Insurance Products offer customers a number of optional payment and collateral protection insurance products in connection with its loans.
As of December 31, 2016, the Company operated branches in 339 locations in the states of Alabama (49 branches), Georgia (eight branches), New Mexico (19 branches), North Carolina (36 branches), Oklahoma (28 branches), South Carolina (72 branches), Tennessee (21 branches), Texas (98 branches) and Virginia (eight branches). The Company's ParaData loan management system provides management information and control capabilities, including monitoring of all loans made, collections, delinquencies and other functions. RMC Reinsurance is a subsidiary of Regional Management Corp.
Small loans include branch small loans and convenience checks. Its branch small loans are made for customers visiting its branches and complete a standardized credit application. Customers may also complete and submit a loan application by phone or on its consumer Website before closing the loan in one of its branches. Its convenience check loans are originated through direct mail campaigns to pre-screened individuals. These campaigns are launched throughout the year, but are weighted to coincide with seasonal demand for loans to finance vacations, back-to-school needs and holiday spending. It also launches convenience check campaigns in conjunction with opening new branches to help build an initial customer base. Customers can cash or deposit convenience checks at their convenience.
A consumer can apply for a large loan by visiting one of its branches. The customer is interviewed by one of the Company's employees in order to evaluate the applicant's creditworthiness, including a review of a credit bureau report. It requires its large loans to be secured by a vehicle, which may be an automobile, motorcycle, boat or all-terrain vehicle, or non-essential household goods.
The Company's automobile loans are offered through a network of dealers in its geographic footprint. Automobile loans include indirect automobile loans and direct automobile loans. Indirect automobile loans allow customers and dealers to complete a loan at the dealership without the need to visit one of its branches. It typically offers indirect loans through larger franchise and independent dealers within its geographic footprint. The dealers collect credit applications from their customers and either forward the applications to the Company specifically or, more commonly, submit the applications to numerous potential lenders through online credit application networks. Once the loan is approved, the dealer closes the loan on a standardized retail installment sales contract at the point of sale. Subsequently, the Company purchases the loan and services it locally through its branch network.
The Company also offers direct automobile loans to its customers through its relationships with dealerships throughout its geographic footprint. These dealers will contact one of its local branches to initiate a loan application as soon as they have identified a customer meeting its written underwriting standards. It reviews the application and requested loan terms and propose modifications, if necessary, before providing initial approval and inviting the dealer and the customer to come to a local branch.
The Company's retail loans are indirect loans made through a retailer at the point of sale without the need for the customer to visit one of its branches, similar to its indirect automobile loans. Its customers use its retail loans to finance the purchase of furniture, appliances and other retail products. Its retail loans provide financing to customers not qualifying for prime financing from traditional lenders.
Optional Payment and Collateral Protection Insurance Products
The Company offers its customers a number of optional payment and collateral protection insurance products in connection with its loans. It does not sell insurance to non-borrowers. Optional payment and collateral protection insurance products include credit life insurance, credit accident and health insurance, and involuntary unemployment insurance; property insurance, and reinsurance. It markets and sells optional credit life insurance, credit accident and health insurance, and involuntary unemployment insurance in connection with its loans in selected markets.
Under property insurance, it also requires that its customers provide proof of acceptable insurance for any personal property securing a loan. Customers can provide proof of such insurance purchased from a third party, such as homeowners or renters insurance, or can purchase the property insurance that it offers. In addition to offering property insurance, it also offers, in select markets, vehicle single interest insurance that provides coverage on automobiles used as collateral on small and large loans. The optional payment and collateral protection insurance risks are ceded by the non-affiliated insurance company that issues the policies to RMC Reinsurance.
The Company competes with World Acceptance Corporation.
Regional Management Corp
979 Batesville Rd Ste B
GREER SC 29651-6819