Loans Receivable

6 Months Ended

Jun. 30, 2011

Loans Receivable

Loans Receivable

4.           LOANS RECEIVABLE

Loans receivable consists of the following:

(In thousands)	As of June 30, 2011
	Dealer Loans			Purchased Loans			Total
Loans receivable	$	1,331,973		$	250,932		$	1,582,905
Allowance for credit losses		(131,728	)		(13,091	)		(144,819	)
Loans receivable, net	$	1,200,245		$	237,841		$	1,438,086
(In thousands)	As of December 31, 2010
	Dealer Loans			Purchased Loans			Total
Loans receivable	$	1,082,039		$	262,842		$	1,344,881
Allowance for credit losses		(113,227	)		(13,641	)		(126,868	)
Loans receivable, net	$	968,812		$	249,201		$	1,218,013

A summary of changes in Loans receivable is as follows:

(In thousands)	For the Three Months Ended June 30, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	1,233,387		$	254,969		$	1,488,356
New Consumer Loan assignments (1)		273,799			30,769			304,568
Principal collected on Loans receivable		(203,087	)		(37,733	)		(240,820	)
Accelerated Dealer Holdback payments		12,371			-			12,371
Dealer Holdback payments		19,175			-			19,175
Transfers (2)		(2,961	)		2,961			-
Write-offs		(476	)		(61	)		(537	)
Recoveries		533			27			560
Net change in other loans		(768	)		-			(768	)
Balance, end of period	$	1,331,973		$	250,932		$	1,582,905
(In thousands)	For the Three Months Ended June 30, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	925,094		$	286,392		$	1,211,486
New Consumer Loan assignments (1)		189,745			25,708			215,453
Principal collected on Loans receivable		(149,096	)		(36,923	)		(186,019	)
Accelerated Dealer Holdback payments		8,121			-			8,121
Dealer Holdback payments		10,712			-			10,712
Transfers (2)		(3,522	)		3,522			-
Write-offs		(672	)		(24	)		(696	)
Recoveries		582			20			602
Net change in other loans		(45	)		-			(45	)
Currency translation		33			-			33
Balance, end of period	$	980,952		$	278,695		$	1,259,647

(In thousands)	For the Six Months Ended June 30, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	1,082,039		$	262,842		$	1,344,881
New Consumer Loan assignments (1)		610,207			63,495			673,702
Principal collected on Loans receivable		(411,546	)		(82,866	)		(494,412	)
Accelerated Dealer Holdback payments		24,416			-			24,416
Dealer Holdback payments		34,749			-			34,749
Transfers (2)		(7,557	)		7,557			-
Write-offs		(827	)		(139	)		(966	)
Recoveries		1,030			43			1,073
Net change in other loans		(538	)		-			(538	)
Balance, end of period	$	1,331,973		$	250,932		$	1,582,905
(In thousands)	For the Six Months Ended June 30, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	869,603		$	297,955		$	1,167,558
New Consumer Loan assignments (1)		394,863			52,151			447,014
Principal collected on Loans receivable		(311,087	)		(81,069	)		(392,156	)
Accelerated Dealer Holdback payments		15,320			-			15,320
Dealer Holdback payments		22,882			-			22,882
Transfers (2)		(9,665	)		9,665			-
Write-offs		(2,060	)		(49	)		(2,109	)
Recoveries		1,146			42			1,188
Net change in other loans		(83	)		-			(83	)
Currency translation		33			-			33
Balance, end of period	$	980,952		$	278,695		$	1,259,647

1)   The Dealer Loans amount represents advances paid to Dealer-Partners on Consumer Loans assigned under our Portfolio Program.  The Purchased Loans amount represents one-time payments made to Dealer-Partners to purchase Consumer Loans assigned under our Purchase Program.

(2)   Under our Portfolio Program, certain events may result in Dealer-Partners forfeiting their rights to Dealer Holdback.  We transfer the Dealer-Partner's outstanding Dealer Loan balance to Purchased Loans in the period this forfeiture occurs.

A summary of changes in the allowance for credit losses is as follows:

(In thousands)	For the Three Months Ended June 30, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	122,801		$	13,067		$	135,868
Provision for credit losses		8,870			58			8,928
Write-offs		(476	)		(61	)		(537	)
Recoveries		533			27			560
Balance, end of period	$	131,728		$	13,091		$	144,819
(In thousands)	For the Three Months Ended June 30, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	111,372		$	11,772		$	123,144
Provision for credit losses		802			988			1,790
Write-offs		(672	)		(24	)		(696	)
Recoveries		582			20			602
Currency translation		31			-			31
Balance, end of period	$	112,115		$	12,756		$	124,871

(In thousands)	For the Six Months Ended June 30, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	113,227		$	13,641		$	126,868
Provision for credit losses		18,298			(454	)		17,844
Write-offs		(827	)		(139	)		(966	)
Recoveries		1,030			43			1,073
Balance, end of period	$	131,728		$	13,091		$	144,819
(In thousands)	For the Six Months Ended June 30, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	108,792		$	8,753			117,545
Provision for credit losses		4,206			4,010			8,216
Write-offs		(2,060	)		(49	)		(2,109	)
Recoveries		1,146			42			1,188
Currency translation		31			-			31
Balance, end of period	$	112,115		$	12,756		$	124,871