Park Motor Finance Stops Offering Car Loans

Park Motor Finance is closed to new business as of August 26,
and Dr Roger Gewolb, former CEO of Park, has left the company, it
was announced.

The decision to stop lending was taken “in light of the
continued poor conditions in the credit markets and uncertain
economic times”, said Maureen Coen, head of European conduit
finance at Credit Suisse, which provided backing for the non-prime
motor finance specialist.

Brokers which included Park Motor Finance on their funding panel
have been told that Park will no longer take on new motor finance
contracts.

It was announced that Gewolb’s minority stake in Park Motor
Finance and its parent company, Park Acquisitions Ltd (PAL) has
been acquired by Credit Suisse, meaning PAL is now a wholly-owned
subsidiary of the investment bank.

Park Motor Finance was acquired by Gewolb, with backing from
Credit Suisse, in early 2006, in order to specialise in motor loans
for near-prime applicants.

The current Park Motor Finance portfolio will continue to be
serviced, but the future for the company’s staff is unclear, with
the possibility that Credit Suisse may decide to sell the loan
portfolio to a third party.

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Gewolb said in a statement: “I have very much enjoyed working
with Credit Suisse and the Park team and its customers, suppliers
and other business partners over the past two years.

“Despite the significant progress we have been making at Park,
Credit Suisse and I agree the uncertain times in which we find
ourselves do not support the continued origination of new
business.”

Karl Morris, director of brokerage Motorhouse Wales, which
included Park Motor Finance on its panel of funders, said: “Park
ceased trading 48 hours ago. It’s not a problem for us as we will
carry on dealing with our other funders, although it’s a shame as
we never had any problems with Park.”