Central Finance

FAQ's:

Who are you?
    Central Finance is a consumer finance company that has been representing the finance industry in Oregon for over 20 years. Our office is located in Oak Grove, Oregon. Our highly qualified and experienced staff of four provides consumer lending to those in need of auto and consumer financing.

What do you do?
    As a consumer finance company, we serve Oregon and Washington residents by providing funds to credit worthy customers, either as a cash loan or a retail installment contract to purchase automobiles or other consumer needs.

Who do you serve?
    We serve the general public in the Portland metro area and within a 50 mile radius of our office located in Oak Grove, Oregon.

How is your interest rate determined?
    In 1981, interest rates were deregulated by the state of Oregon. Companies now determine the rates we need to charge according to our borrowing rates, operational costs, and an allowance for a fair profit. Rates will vary depending on the amount of risk involved, the state of the economy, the customers ability to repay, and the past credit history. At Central, these are referred to as the "three C's" of credit: Collateral, Character, and Capacity to repay. The Annual Percentage Rate (APR) is the percentage figure that includes the total cost of borrowing.

What are the differences between Consumer Finance Companies, Banks, Savings and Loans, and Credit Unions?
    The basic distinction between these lenders have been slowly blurred as each has tried to get some of the other's business and has expanded related services. Basically, the Consumer Finance Companies are retailers of credit, while the other three are primarily wholesalers of credit. Consumer Finance Companies usually borrow money from banks and in turn loan it to you, the consumer.

How are you regulated?
    In Oregon we are regulated by the Department of Insurance and Finance. The entire credit industry is also regulated on the federal level by a series of laws that have been passed to protect the consumer. The Truth in Lending Act was passed in 1968. It enabled the consumer to be able to shop around for the best possible rate by standardizing all types of finance charges. That law was followed by the Equal Credit Opportunity Act, the Fair Credit Reporting Act, and the Consumer Credit Protection Regulations. The consumer is well protected when applying for credit.