A trustee overseeing the bankruptcy of Tricolor Holdings is seeking court approval for Vervent Inc. to take over servicing car loans originated by the bankrupt subprime lender, according to a court filing.
Tricolor, which focused on lending to people with limited or no credit histories, filed for bankruptcy on Sept. 10 amid fraud allegations. A slew of banksare bracing for losses on loans tied to the subprime auto lender and federal prosecutors are investigating whether collateral was double-pledged.
Vervent’s duties will include collecting receivables originated by Tricolor and collateral, and investigating delinquencies, according to the filing on Wednesday. ...
