MetaBank Agrees with State to Provide Better Loan Terms
to Dan Nelson Automotive Customers
[For a news release on the topic, go to www.IowaAttorneyGeneral.org, see 'latest news'.]
[Note: This agreement is contingent on approval of the U.S. Bankruptcy Court.]
Q. My CNAC loan (Car Now Acceptance Company) was sold to another company -- what happens to me?
A. The settlement with MetaBank (announced 8/25) covers only consumers whose contracts are currently held by Car Now Acceptance Company (CNAC). If your CNAC loan was sold to another company, this agreement does not apply to you. The Iowa Attorney General's Office is planning to seek similar agreements with other lenders who purchased CNAC loans.
Q. If this agreement is approved by the Bankruptcy Court, will I receive a letter about this?
A. If you are a current CNAC customer and you still have the car, you will receive a letter from the Iowa Attorney General's office regarding the agreement with MetaBank.
Q. When can I expect to receive that letter?
A. The letter will likely be mailed to you in the first half of September. The Bankruptcy Court must approve the settlement with MetaBank before the letter can be mailed.
Q. My car was repossessed by CNAC and I no longer have it -- what does this agreement do for me?
A. MetaBank has agreed not to pursue repayment of loans from consumers whose cars were previously repossessed.
Q. Will MetaBank be sending me a new contract to sign?
A. No. If you still have an active CNAC loan, you automatically receive the benefits of the agreement. You do not have to sign a new contract.
Q. Will I get a new payment schedule?
A. If you call and ask MetaBank, they will send you a new payment schedule. The number to call is 800-756-9260.
Q. Where can I get repairs done on the warranty?
A. A list of repair shops will be included in the letter the Iowa Attorney General's Office will be sending to current CNAC customers.
Q. What if my loan rate is 18% or lower?
A. The agreement only lowers interest rates that were above 18%.
Q. I bought a car from Dan Nelson and my loan was with another lender (not CNAC). Does this agreement change my loan?
A. No. The Iowa Attorney General's lawsuit focused mainly on the Buy Here-Pay Here loans financed by CNAC. The Office is not planning to seek similar agreements for consumers who have traditional used car loans with outside lenders.