Lower Losses Are Leading Ford Credit to Close Nevada Collections Center
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DEARBORN, Mich. — SubPrime Auto Finance News recently learned that Ford Credit it is slated to close its Henderson, Nev., collections office in late March.
A Ford Credit spokeswoman told SubPrime the office will close March 31 and "about 200 employees will be separated."
She said the office primarily supports collections on delinquent accounts.
Asked why the office is closing, Margaret Mellott, a Ford Credit spokeswoman, said, "Ford Credit has improved credit losses — a situation that means it doesn't require the same level of collection support."
She noted that the employees will receive severance packages and all functions covered from the Nevada office will be moved to another of Ford Credit's U.S. centers.
According to a report in the Las Vegas Sun, in late January 2009, Ford Credit trimmed more than half of the employees at this Nevada center. About 300 positions out of 570 were cut.
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At the time, Mellott told the newspaper that the automaker's decision to sell Jaguar and Land Rover, as well as trim down its stake in Mazda, led to a reduction in the number of accounts the captive covers.
She said that the office was transitioning from a full-service center to a collection specialty center that would handle collections and account servicing. The origination of new contracts was moved to other centers at the time.
