Freedom Financial Group reports 2Q rebound

The company on Aug. 8 announced second-quarter net income was up from the $323,746 loss a year ago. Net income for the first six months of 2008 was $894,735, compared to a $686,912 loss the same period a year ago.

Freedom Financial provides consumer loans and specializes in acquiring, collecting and servicing subprime loans purchased largely from independent used-car dealers.

The company was born in 2003 out of a bankruptcy reorganization plan involving its predecessor, Stevens Financial Group. In 2001, the state ordered Stevens Financial to stop selling securities, owner Clarence Stevens filed for bankruptcy, and he and several employees were later charged with securities fraud and related offenses, according to previous Springfield Business Journal coverage.

Since then, Freedom Financial has been working to recoup money that about 2,800 investors lost when Stevens Financial went down. Earlier this year, the company secured a two-year, $15 million revolving line of credit through ReMark Capital Group, which allowed it to expand its Midwestern sales presence.

“The (second-quarter) gain is mainly attributed to the recent discontinuance of (Freedom Financial’s) operations in Canada and includes improved performance of auto receivables in the Midwest,” President and CEO Jerry Fenstermaker said in the release. “The market niche for FFG in the Midwest along with our core competencies have strengthened in terms of volume growth, lower charge-offs and significantly lower delinquencies.”

FFG also has found success in helping independent car dealers who have lost lenders in the wake of the subprime mortgage fallout, Festermaker said.

Shares (OTC BB: FFGR) last traded Tuesday at 12 cents, compared to a 52-week range of 7 cents to 20 cents.[[In-content Ad]]