4.	LOANS RECEIVABLE

Loans receivable consists of the following:

(In thousands)	As of December 31, 2011
	Dealer Loans			Purchased Loans			Total
Loans receivable	$	1,506,539		$	246,352		$	1,752,891
Allowance for credit losses		(141,712	)		(12,606	)		(154,318	)
Loans receivable, net	$	1,364,827		$	233,746		$	1,598,573

(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 Year Ended December 31, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	1,082,039		$	262,842		$	1,344,881
New Consumer Loan assignments (1)		1,152,537			122,197			1,274,734
Principal collected on Loans receivable		(843,100	)		(153,827	)		(996,927	)
Accelerated Dealer Holdback payments		47,411			-			47,411
Dealer Holdback payments		85,184			-			85,184
Transfers (2)		(15,493	)		15,493			-
Write-offs		(3,055	)		(433	)		(3,488	)
Recoveries (3)		1,902			80			1,982
Net change in other loans		(886	)		-			(886	)
Balance, end of period	$	1,506,539		$	246,352		$	1,752,891

(In thousands)	For the Year Ended December 31, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	869,603		$	297,955		$	1,167,558
New Consumer Loan assignments (1)		786,909			100,430			887,339
Principal collected on Loans receivable		(632,616	)		(153,331	)		(785,947	)
Accelerated Dealer Holdback payments		32,629			-			32,629
Dealer Holdback payments		44,220			-			44,220
Transfers (2)		(17,807	)		17,807			-
Write-offs		(3,043	)		(143	)		(3,186	)
Recoveries (3)		2,318			124			2,442
Net change in other loans		(207	)		-			(207	)
Currency translation		33			-			33
Balance, end of period	$	1,082,039		$	262,842		$	1,344,881

(In thousands)	For the Year Ended December 31, 2009
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	823,567		$	325,185		$	1,148,752
New Consumer Loan assignments (1)		516,093			103,283			619,376
Principal collected on Loans receivable		(515,847	)		(145,399	)		(661,246	)
Accelerated Dealer Holdback payments		17,372			-			17,372
Dealer Holdback payments		44,269			-			44,269
Transfers (2)		(14,935	)		14,935			-
Write-offs		(4,234	)		(95	)		(4,329	)
Recoveries (3)		2,996			46			3,042
Net change in other loans		152			-			152
Currency translation		170			-			170
Balance, end of period	$	869,603		$	297,955		$	1,167,558

(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.

(3)	Represents collections received on previously written off Loans.

Contractual net cash flows are comprised of the contractual repayments of the underlying Consumer Loans for Dealer and Purchased Loans, less the related Dealer Holdback payments for Dealer Loans. The difference between the contractual net cash flows and the expected net cash flows is referred to as the nonaccretable difference. This difference is neither accreted into income nor recorded in our balance sheets. We do not believe that the contractual net cash flows of our Loan portfolio are relevant in assessing our financial position. We are contractually owed repayments on many Consumer Loans, primarily those older than 120 months, where we are not forecasting any future net cash flows.

The excess of expected net cash flows over the carrying value of the Loans is referred to as the accretable yield and is recognized on a level-yield basis as finance charge income over the remaining lives of the Loans. A summary of changes in the accretable yield is as follows:

(In thousands)	For the Year Ended December 31, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of year	$	351,569		$	124,520		$	476,089
New Consumer Loan assignments (1)		508,868			59,519			568,387
Finance charge income		(374,844	)		(85,778	)		(460,622	)
Forecast changes		29,994			9,582			39,576
Transfers (2)		(7,541	)		12,239			4,698
Balance, end of year	$	508,046		$	120,082		$	628,128

(In thousands)	For the Year Ended December 31, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of year	$	281,409		$	129,970		$	411,379
New Consumer Loan assignments (1)		371,588			56,480			428,068
Finance charge income		(299,514	)		(88,536	)		(388,050	)
Forecast changes		6,343			13,372			19,715
Transfers (2)		(8,257	)		13,234			4,977
Balance, end of year	$	351,569		$	124,520		$	476,089

(In thousands)	For the Year Ended December 31, 2009
	Dealer Loans			Purchased Loans			Total
Balance, beginning of year	$	270,893		$	126,441		$	397,334
New Consumer Loan assignments (1)		247,983			56,956			304,939
Finance charge income		(244,667	)		(84,770	)		(329,437	)
Forecast changes		12,251			24,378			36,629
Transfers (2)		(5,051	)		6,965			1,914
Balance, end of year	$	281,409		$	129,970		$	411,379

(1)

The Dealer Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related advances paid to Dealer-Partners. The Purchased Loans amount represents the net cash flows expected at the time of assignment on Consumer Loans assigned under our Purchase Program, less the related one-time payments made to Dealer-Partners.

(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 and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.

Additional information related to new Consumer Loan assignments is as follows:

(In thousands)	For the Year Ended December 31, 2011
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,786,477	$	248,037	$	2,034,514
Expected net cash flows at the time of assignment (2)		1,661,405		181,716		1,843,121
Fair value at the time of assignment (3)		1,152,537		122,197		1,274,734

(In thousands)	For the Year Ended December 31, 2010
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	1,237,993	$	212,519	$	1,450,512
Expected net cash flows at the time of assignment (2)		1,158,497		156,910		1,315,407
Fair value at the time of assignment (3)		786,909		100,430		887,339

(In thousands)	For the Year Ended December 31, 2009
	Dealer Loans		Purchased Loans		Total
Contractual net cash flows at the time of assignment (1)	$	824,213	$	224,414	$	1,048,627
Expected net cash flows at the time of assignment (2)		764,076		160,239		924,315
Fair value at the time of assignment (3)		516,093		103,283		619,376

(1)

The Dealer Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents the repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our Purchase Program.

(2)

The Dealer Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents the repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our Purchase Program.

(3)	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.

Credit Quality

We monitor and evaluate the credit quality of Consumer Loans assigned under our Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our initial expectations. For additional information regarding credit quality, see Note 2 to the consolidated financial statements. The following table compares our forecast of Consumer Loan collection rates as of December 31, 2011, with the forecasts as of December 31, 2010, as of December 31, 2009, and at the time of assignment, segmented by year of assignment:

	Forecasted Collection Percentage as of (1)												Variance in Forecasted Collection Percentage from
Consumer Loan Assignment Year	December 31, 2011			December 31, 2010			December 31, 2009			Initial Forecast			December 31, 2010			December 31, 2009			Initial Forecast
2002		70.5	%		70.5	%		70.4	%		67.9	%		0.0	%		0.1	%		2.6	%
2003		73.7	%		73.7	%		73.7	%		72.0	%		0.0	%		0.0	%		1.7	%
2004		73.0	%		73.0	%		73.1	%		73.0	%		0.0	%		-0.1	%		0.0	%
2005		73.6	%		73.7	%		73.7	%		74.0	%		-0.1	%		-0.1	%		-0.4	%
2006		70.0	%		70.2	%		70.3	%		71.4	%		-0.2	%		-0.3	%		-1.4	%
2007		68.1	%		67.9	%		68.3	%		70.7	%		0.2	%		-0.2	%		-2.6	%
2008		70.0	%		69.9	%		70.0	%		69.7	%		0.1	%		0.0	%		0.3	%
2009		79.4	%		78.5	%		75.6	%		71.9	%		0.9	%		3.8	%		7.5	%
2010		76.8	%		75.8	%		-			73.6	%		1.0	%		-			3.2	%
2011		73.2	%		-			-			72.5	%		-			-			0.7	%

(1)	Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest.

Advances paid to Dealer-Partners on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealer-Partners to purchase Consumer Loans assigned under our Purchase Program are aggregated into pools for purposes of recognizing revenue and evaluating impairment. As a result of this aggregation, we are not able to segment the carrying value of the majority of our Loan portfolio by year of assignment. The following table summarizes Loan pools based on the performance of the underlying pool of Consumer Loans:

(In thousands)	As of December 31, 2011
	Loan Pool Performance Meets or Exceeds Initial Estimates						Loan Pool Performance Less than Initial Estimates
	Dealer Loans		Purchased Loans		Total		Dealer Loans			Purchased Loans			Total
Loans receivable	$	511,926	$	192,502	$	704,428	$	994,613		$	53,850		$	1,048,463
Allowance for credit losses		-		-		-		(141,712	)		(12,606	)		(154,318	)
Loans receivable, net	$	511,926	$	192,502	$	704,428	$	852,901		$	41,244		$	894,145

(In thousands)	As of December 31, 2010
	Loan Pool Performance Meets or Exceeds Initial Estimates						Loan Pool Performance Less than Initial Estimates
	Dealer Loans		Purchased Loans		Total		Dealer Loans			Purchased Loans			Total
Loans receivable	$	519,966	$	172,382	$	692,348	$	562,073		$	90,460		$	652,533
Allowance for credit losses		-		-		-		(113,227	)		(13,641	)		(126,868	)
Loans receivable, net	$	519,966	$	172,382	$	692,348	$	448,846		$	76,819		$	525,665

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

(In thousands)	For the Year Ended December 31, 2011
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	113,227		$	13,641		$	126,868
Provision for credit losses		29,638			(682	)		28,956
Write-offs		(3,055	)		(433	)		(3,488	)
Recoveries (1)		1,902			80			1,982
Balance, end of period	$	141,712		$	12,606		$	154,318

(In thousands)	For the Year Ended December 31, 2010
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	108,792		$	8,753		$	117,545
Provision for credit losses		5,130			4,907			10,037
Write-offs		(3,043	)		(143	)		(3,186	)
Recoveries (1)		2,318			124			2,442
Currency translation		30			-			30
Balance, end of period	$	113,227		$	13,641		$	126,868

(In thousands)	For the Year Ended December 31, 2009
	Dealer Loans			Purchased Loans			Total
Balance, beginning of period	$	113,831		$	17,004		$	130,835
Provision for credit losses		(3,962	)		(8,202	)		(12,164	)
Write-offs		(4,234	)		(95	)		(4,329	)
Recoveries (1)		2,996			46			3,042
Currency translation		161			-			161
Balance, end of period	$	108,792		$	8,753		$	117,545

(1)	Represents collections received on previously written off Loans.