Auto loan servicer Peak5 Financial, formerly Flatiron Financial and Centrix Financial, shut down its business on July 10.
The company serviced loans originated by credit unions. Two companies, Systems & Services Technologies in St. Joseph, Mo. and Auto Portfolio Services in Greenwood Village, Colo. have taken over some of Peak5's loans.
One client was Velocity CU, which told Credit Union Times it was notified June 12 that Peak5 would be ceasing all operations. Velocity had already transferred many of its loans from peak5 to SST in January 2009.
"Velocity will work closely with our members and SST to ensure that our members' loans and payments are serviced properly during this temporary disruption caused by the untimely closure of Peak 5," Debbie Mitchell, president/CEO of Velocity, said.
A long list of borrowers trying to pay their loans or retrieve their vehicle titles appear at http://www.complaintsboard.com/complaints/peak-5-c226270.html.
Peak5 CEO Kevin Barry said in October of last year that Peak5 would have to either find a buyer, raise rates or close by year-end (CU Times, Nov. 8, 2008).