Do you allow dealers to refinance auto loans from other financial institutions through your indirect program? If you do, you shouldn’t and if you don’t are you making sure your dealers aren’t sending you refinance loan applications? The main problem is that if that loan is ever part of a bankruptcy you will loose big time because the money you loaned was not used to purchase the car. Monitor you funding packets that come in. If there is not a copy of the title and the loan amount is very close to the payoff on the trade it, call your member and ask them. Make sure you have a clause in your dealer agreement that says something like….”Non-retail loan applications are not allowed.” It will help to give you some recourse if you ever find out.