Not totally all states allow customer boat finance companies to offer credit insurance coverage along with their loans, but where they are doing, lenders have actually four reasons that are main do this:
- To earn much more in interest regarding the increased amount financed.
- To get commissions from insurance providers. (if the insurer and loan provider are owned by the parent that is same, the income would go to the lending company.)
- In states with low interest caps, to build enough income to support operations. Continue reading “Where credit insurance coverage is permitted, state laws and regulations usually provide strong incentives for loan providers to market it”