Posted on 08/08/2019 11:47:10 AM PDT by robowombat
Greater Cincinnati auto lender to shut down, lay off workforce of 150
A Greater Cincinnati auto lender that specializes in loans to service members will close this year, resulting in the layoffs of all 150 of its employees. Enlarge A Greater Cincinnati auto lender that specializes in loans to service members will close this year, resulting in the layoffs of all 150 of its employees. GETTY IMAGES | PEOPLEIMAGES
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Security National Automotive Acceptance Corporation Mason, OH See full profile
By Bill Cieslewicz – Managing editor, Cincinnati Business Courier 3 hours ago A Greater Cincinnati auto lender that specializes in loans to service members will close this year, resulting in the layoffs of all 150 of its employees.
Security National Automotive Acceptance Co. LLC (SNAAC), located at 6951 Cintas Blvd. in Mason, will cease operations by the end of the year, according to a Worker Adjustment and Retraining Notification (WARN) filed with the state, a requirement for major workforce reductions and plant closings. The notice, written by Grant Skeens, president and CEO, was sent to the Ohio Department of Job and Family Services on Aug. 7.
In his letter explaining the action, Skeens cited “an unforeseen and unprecedented downturn in business.”
SNAAC, founded in 1989, specializes in loans to service members primarily to purchase used vehicles. It operates in 30 states.
Terminations began Aug. 7 and will continue through the end of the year, Skeens wrote. The separations are permanent and there are no bumping rights.
In 2017, the Consumer Financial Protection Bureau enforced a $1.25 million penalty against SNAAC after it failed to provide more than $1 million in refunds and credits that affected more than 1,000 customers. The investigation was sparked in 2015 by a tip from a service member’s father who said the company issued worthless “credits” to hundreds of consumers and failed to provide proper redress to others.
This week’s move is the fifth major layoff notice announced in Greater Cincinnati in the past month:
Addition Manufacturing Technologies LLC in Lebanon announced Monday that it will shut down Aug. 30, resulting in the termination of its 119-person workforce. On Aug. 1, KOI Auto Parts announced it was closing its warehouse in Camp Washington, resulting in the displacement of 137 employees by year's end. On July 31, TMK Ipsco Tubulars Inc. announced it would close its plant in Wilder due to a downturn in the oil and gas industry resulting in the layoffs of 159 of its 179 local employees by Sept. 24. Earlier in July, Stanley Black & Decker Inc. announced it will close its production plant in Georgetown (Brown County) by Nov. 1, which will result in 94 layoffs. Also in July, financially troubled Everything but the House announced it will lay off 230 employees and close a distribution center in Blue Ash and a warehouse in Linwood if the company cannot find a buyer.
the entire city or this particular business?
"In 2017, the Consumer Financial Protection Bureau enforced a $1.25 million penalty against SNAAC after it failed to provide more than $1 million in refunds and credits that affected more than 1,000 customers. The investigation was sparked in 2015 by a tip from a service member’s father who said the company issued worthless “credits” to hundreds of consumers and failed to provide proper redress to others."
If they were taking advantage of service members, maybe it was time for them to go.
That’s 730 jobs. The population of Greater Cincinnati is 2.1 million.
Not to make light of anybody being out of a job, but isn’t that just statistical white noise?
Worker Adjustment and Retraining Notification (WARN) filed with the state, a requirement for major workforce reductions and plant closings.
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I feel this is the government overstepping their ‘authority’.
So if I close a business down I am required to report (get permission?) to the gov?
Morally for the sake of your employees, yes- but make it a law?
This company was sleazy as hell. They took advantage of young service members. High interest rates, mandatory add-ons to loans with things like extended warranties that never paid when the vehicle broke down, expensive gap insurance, life insurance, roadside assistance, you name it, they added this crap to loans. Miss one payment? Instant repo. Company didn’t give a damn if they were deployed . I had two of my Marines get screwed by these guys in the early 2000’s. Good riddance!
Maybe they should have been above board doing business.
Maybe WKRP is hiring.
Maybe they can work for Ferryman - The Mortician Who Loves You....A Lot!
It looks like more people have jobs and don’t have to rely in marginal businesses and loan sharks.
Good riddance.
WKRP eerily predicted that by now it would be a giant computer that employed one sales guy.
Sounds like they specialized in exploiting them. USAA Bank, Pentagon Federal Credit Union, Navy FCU and a number of legitimate outfits do loans to service members and their families at very competitive rates. I have an auto loan through one of them.
Back when I was a pup in college, I had an interview and a job offer from an outfit which was a "auto lender that specializes in loans to service members".
They had a great pitch in that they would get a service member stationed in, say, Guam hooked up with an auto which Uncle Sam would ship stateside as part of their personal affects.
With a minimal amount of research, I figured out they were taking the service members for a ride because they could get a better price on the car stateside. If I could figure it out, I had no doubt a service member could figure it out and I wanted no part in gouging them.
I don’t disagree with you and yes, it probably is in most states...
BUT
I still think it is overstepping
I'll play the devil's advocate. What if the various military credit unions denied their loan requests because of no credit history or lousy credit history? They aren't in the business of offering deep subprime loans.
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