- While we cannot absolutely guarantee the authenticity
of this letter, it comes from a reliable source and we thought it worthy
of sharing... -ed
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- Chevy Chase Bank
- 7501 Wisconsin Avenue
- Bethesda, Maryland 20814
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- March 26, 2003
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- To our Automobile Dealerships:
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- Effective today, March 26, 2003, Chevy Chase Bank will
no longer accept applications for loans and leases from automobile dealerships.
Drafts will only be honored up until 2:00 EST on March 31,2003, and any
draft presented after 2:00 p.m. EST will not be honored and will be returned
unpaid. If an approval of an application was obtained from us and a draft
presented before March 31, 2003, 2:00 p.m. EST, we will accept assignment
and purchase the contract if received by us within 15 business days of
the draft date. Please shred all Chevy Chase contracts, drafts and other
supplies you may have.
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- We are exiting the indirect lending business due to an
overall unfavorable economic environment within the automotive finance
industry. This includes record U.S. bankruptcy filings, record high levels
of consumer debt outstanding, and uncertainty related to residual value
risk on leased vehicles (My emphasis added). We will continue to finance
automobiles and provide other financing products and a wide array of banking
services in our local market through one of 200 banking offices.
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- We appreciate the outstanding relationships we have with
so many of our dealership partners. We are grateful for the confidence
you have demonstrated in us and are saddened that we will no longer be
working together. Our hope is for your continued success in the years ahead.
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- Sincerely,
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- Chas Roscow
- Senior Vice President and Division Executive
- Consumer Lending Division
- Chevy Chase Bank
- Bethesda, Maryland
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