Who are you?
Central Finance is a consumer finance company that has been
representing the finance industry in Oregon for
over 20 years. Our office is located in Oak
Grove, Oregon. Our highly qualified and
experienced staff of four provides consumer
lending to those in need of auto and consumer
financing.
What do you do?
As a consumer finance company, we serve Oregon and Washington
residents by providing funds to credit worthy
customers, either as a cash loan or a retail
installment contract to purchase automobiles or
other consumer needs..jpg)
Who do you serve?
We serve the general public in the Portland metro area and
within a 50 mile radius of our office located in
Oak Grove, Oregon.
How is your interest rate determined?
In 1981, interest rates were deregulated by the state of
Oregon. Companies now determine the rates we
need to charge according to our borrowing rates,
operational costs, and an allowance for a fair
profit. Rates will vary depending on the amount
of risk involved, the state of the economy, the
customers ability to repay, and the past credit
history. At Central, these are referred to as
the "three C's" of credit: Collateral,
Character, and Capacity to repay. The Annual
Percentage Rate (APR) is the percentage figure
that includes the total cost of borrowing.
What are the differences between Consumer
Finance Companies, Banks, Savings and Loans, and
Credit Unions?
The basic distinction between these lenders have been slowly
blurred as each has tried to get some of the
other's business and has expanded related
services. Basically, the Consumer Finance
Companies are retailers of credit, while the
other three are primarily wholesalers of credit.
Consumer Finance Companies usually borrow money
from banks and in turn loan it to you, the
consumer.
How are you regulated?
In Oregon we are regulated by the Department of Insurance and
Finance. The entire credit industry is also
regulated on the federal level by a series of
laws that have been passed to protect the
consumer. The Truth in Lending Act was passed in
1968. It enabled the consumer to be able to shop
around for the best possible rate by
standardizing all types of finance charges. That
law was followed by the Equal Credit Opportunity
Act, the Fair Credit Reporting Act, and the
Consumer Credit Protection Regulations. The
consumer is well protected when applying for
credit.
