Freedom Financial reports first profitable year since bankruptcy

Springfield-based Freedom Financial Group Inc. wrapped up 2008 with a $303,000 profit, marking its first profitable year since emerging from bankruptcy in 2003.

The consumer finance company - which specializes in acquiring and servicing subprime auto loans - reported its 2008 results on March 9.

The year's gains were due to the company's liquidation of its Canadian subsidiary in May 2008, according to a news release. Considerable progress also was made in the Midwest subprime auto financing markets, where acquired installment contracts grew 87 percent from 2007, the release said.

Revenue was up 11 percent and operating expenses were up 8 percent compared to 2007. Delinquencies ended the year at 4.9 percent, compared to 14.1 percent in 2007, and net charge-offs were at 6 percent, compared to 12.9 percent in 2007.

While demand for subprime financing for used autos "remains strong, the uncertainties surrounding rising unemployment and a general lack of available credit for auto dealers and finance companies may remain significant throughout 2009," President and CEO Jerry Fenstermaker said in the release.

Freedom Financial Group was formed 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.

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