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National Auto Finance Company, Inc. Signs Referral, Servicing Pacts

1 December 1999

National Auto Finance Company, Inc. Signs Referral, Servicing Pacts With Atlantic Coast Federal Credit Union

    JACKSONVILLE, Fla.--Nov. 30, 1999--National Auto Finance Company, Inc. (OTC:NAFI), a leading non-prime auto finance company based in Jacksonville, Florida, today announced that it has signed agreements with Atlantic Coast Federal Credit Union (ACFCU) of Waycross, Georgia, that not only create a non-prime loan referral alliance between the two organizations, but also provide for NAFI to service ACFCU's indirect automobile loan portfolio past due accounts.
    "Today's announcement is a win-win for both National Auto Finance Company, Inc. and Atlantic Coast Federal Credit Union," said NAFI Chairman and CEO Keith Stein. "NAFI's referral alliance for non-prime auto loans allows the credit union to expand the auto loan services it offers to members with less-than-perfect credit histories, and ACFCU gets a partner who can help the credit union grow its business and better service its sizable auto loan portfolio."
    Under terms of the referral alliance, ACFCU will refer non-prime auto loan applications to NAFI for possible funding. This, in turn, gives ACFCU a more complete package of funding alternatives for its network of automobile dealers in South Georgia and North Florida seeking to place loans on behalf of customers with less-than-perfect credit histories.
    The servicing agreement provides for NAFI to service accounts of ACFCU's $40.7 million indirect auto loan portfolio that range from 7 to 60 days past due.
    "We couldn't help but be impressed by NAFI's responsiveness to our needs," said Atlantic Coast Federal Credit Union President Bob Larison. "They have provided a way for us to solidify our relationships with automotive dealers by providing non-prime funding that we don't do. And NAFI's advanced, efficient technologies, especially as their system relates to loan servicing and collections, will help us improve our bottom-line accountability to our membership body."
    According to NAFI President and Chief Operating Officer Bill Magro, the agreements with Atlantic Coast Federal Credit Union demonstrate the benefits NAFI can bring to financial institutions looking for a solid non-prime auto loan funding source, as well as a leading-edge servicing platform. "We have built an organization that is capable of not only funding non-prime auto loans quickly and efficiently, but also servicing them faster, smarter and better."
    NAFI demonstrated its leading-edge systems capability when it announced last month that it had initiated an e-commerce-based credit system - with Dallas, Texas-based Internet Credit Systems (ICS) - that allows auto dealership finance professionals to obtain credit decisions in 2 minutes or less. Once the application is properly verified and approved, NAFI will fund the loan within 48 hours after receiving the properly completed contract package.
    The referral alliance and servicing agreement with Atlantic Coast Federal Credit Union is the latest in a series of exciting developments for the Jacksonville-based non-prime auto finance company.
    Atlantic Coast Federal Credit Union, founded in 1939, today serves 40,000 members with 11 offices in South Georgia and North Florida. It has $307.1 million in assets, with a total loan portfolio of $266.2 million. It has funded $99.1 million worth of auto loans, $40.7 million of which were derived indirectly through automobile dealers.
    National Auto Finance Company, Inc. is a specialized consumer finance company engaged in the purchase, securitization and servicing of automobile loans primarily originated by manufacturer-franchised automobile dealers for non-prime consumers. The company markets its products and services to dealers through the efforts of its direct sales force and through strategic referral and marketing alliances with financial and other institutions that have established relationships with dealers. NAFI has active contractual relationships with approximately 775 dealers in 34 states.