TCF Financial Corp. this month plans to sell $90 million of indirect automobile loans and close a related collection center in Florida.
The $10.3 billion-asset banking company said the sale, to an undisclosed buyer, would not affect third-quarter results.
TCF's chairman and chief executive officer, William A. Cooper, said he looks forward "to putting this unprofitable business behind us." TCF's subprime automobile loans accounted for almost 90%, or about $18 million, of the company's chargeoffs in the first half of 1999.
The bank in December 1998 discontinued new indirect auto loans. These loans generally are made at the dealer with the bank's approval. It will continue direct auto lending for customers with other accounts, "but we really aren't in that business," said Jason Korstange, a spokesman. "Frankly, they can probably go to the dealer and get a better rate." -- Craig Woker