What Westlake Financial Services does and who they lend to
Westlake Financial Services is a subprime auto lender — meaning they lend to borrowers with lower credit scores, past-due accounts, or limited credit history. They buy loans from dealerships across the country rather than originating loans directly to consumers. If you financed a car through a dealership and the paperwork shows Westlake as the lender, your loan is serviced by their company.
Westlake operates in most U.S. states and handles loan servicing, payment processing, and account management. They do not set the interest rate or loan terms — those are set by the dealership at the time of sale. Westlake's role begins after you sign the contract and the dealership sells the loan to them or another investor.
The company is owned by Berkadia, a joint venture between Berkshire Hathaway and Leucadia National Corporation. This ownership structure does not change how your loan works, but it reflects that Westlake is a large, established servicer rather than a small finance company.
Key Takeaways
- Westlake Financial Services buys car loans from dealerships and handles payment collection and account management, but does not set your interest rate or loan terms.
- Your loan terms — including the rate, monthly payment, and loan length — are determined at the dealership before Westlake receives the loan.
- Westlake reports your payment history to credit bureaus, so on-time payments can help rebuild credit and late payments will damage it.
- You can make payments online through Westlake's website or mobile app, by phone, by mail, or at certain retail locations like MoneyGram.
- If you fall behind on payments, Westlake may charge late fees, report the delinquency to credit bureaus, and eventually repossess the vehicle.
How interest rates and loan terms are set
The dealership, not Westlake, sets your interest rate and loan terms when you buy the car. The rate depends on your credit score, down payment, trade-in value, the vehicle's price, and the length of the loan you choose. Westlake receives the loan after the dealership completes the sale and has no power to change the rate or term you agreed to.
If you financed through a dealership and later learned the rate was higher than you expected, that rate was locked in at the time of purchase. Westlake cannot lower it, but some lenders allow a rate reduction if you make a certain number of on-time payments — check your loan documents or contact Westlake to ask whether your loan includes this option.
Your monthly payment is calculated based on the loan amount, interest rate, and loan term. A longer loan (60 months instead of 48, for example) lowers the monthly payment but increases the total interest you pay over the life of the loan. This trade-off is made at the dealership, not by Westlake.
Making payments and managing your account online
Westlake offers multiple payment methods. You can pay online through their website or mobile app, by phone at their customer service number (found on your loan documents or billing statement), by mail to the address listed on your statement, or at retail locations that accept bill payments like MoneyGram or Western Union. Payments made online or by phone are usually processed the same day if submitted before the cutoff time.
Setting up automatic payments through your bank or Westlake's system can help you avoid late fees and missed payments. You can choose the payment date each month, and the payment will be deducted automatically from your bank account. If you need to change your payment date or amount, log into your account online or call customer service.
Your online account shows your current balance, payment history, next payment due date, and payoff amount. The payoff amount is higher than your remaining balance because it includes interest that will accrue between now and your final payment. If you plan to pay off the loan early, ask Westlake for a payoff quote valid for a specific number of days so you know the exact amount needed.
Late payments, fees, and what happens if you fall behind
A payment is considered late if it arrives after the due date shown on your statement. Westlake typically charges a late fee if your payment is 10 or more days past due — the amount varies by state and is listed in your loan agreement. Late fees do not reduce your principal balance; they are added to what you owe.
If you miss a payment, Westlake reports the delinquency to the three major credit bureaus (Equifax, Experian, and TransUnion) after 30 days. This report stays on your credit report for seven years and will lower your credit score. After 60 days of non-payment, Westlake may send a warning letter. After 90 to 120 days, they may begin repossession proceedings.
If you cannot make a payment on time, contact Westlake before the due date. Some borrowers are offered a one-time payment deferment (pushing the payment to the end of the loan) or a loan modification that lowers the monthly payment. These options are not may provide and depend on your account history and current situation, but asking is worth doing before you fall behind.
Repossession and what triggers it
Westlake has the legal right to repossess your vehicle if you are in default — typically defined as 120 days or more past due, though some loan agreements allow repossession after 90 days. Repossession can happen without warning and without a court order in most states. The lender can hire a repossession company to take the car from your driveway, workplace, or street.
Once the vehicle is repossessed, Westlake sells it at auction. The proceeds from the sale are applied to your remaining loan balance, late fees, and repossession costs. If the sale price is less than what you owe, you are responsible for the difference — called a deficiency. If the sale price exceeds what you owe, you may receive the surplus, though Westlake deducts their costs first.
Repossession severely damages your credit and can make it difficult to borrow money for years. If you are at risk of repossession, contact Westlake when ready to discuss options. Some states have laws requiring the lender to notify you before repossession or to offer a chance to catch up on payments, so check your state's rules.
Credit reporting and how Westlake affects your credit score
Westlake reports your account status to credit bureaus each month. On-time payments are reported as positive activity and help rebuild credit, especially if you had a poor credit score when you took out the loan. Missed payments, late payments, and defaults are reported as negative activity and will lower your score.
Your payment history makes up 35 percent of your credit score, so consistent on-time payments with Westlake can meaningfully improve your credit over time. After two years of on-time payments, many borrowers see a noticeable increase in their score. This improvement can help you may have access to for better rates on future loans or credit cards.
If you dispute a payment or believe Westlake reported incorrect information, you can file a dispute with the credit bureau directly or ask Westlake to investigate. Westlake must respond to disputes within 30 days. Keep copies of your payment confirmations and statements in case you need to prove you paid on time.
Refinancing a Westlake loan with another lender
You can refinance a Westlake car loan with a different lender if your credit has improved or if you find a lower interest rate elsewhere. Refinancing means taking out a new loan with a different lender to pay off the Westlake loan in full. The new lender pays Westlake the payoff amount, and you then make payments to the new lender instead.
Refinancing makes sense if the new interest rate is significantly lower than your current rate and the loan term does not extend too far into the future. Use an online calculator to compare your current total interest cost against the cost of refinancing. Keep in mind that refinancing involves a new process, credit check, and possibly new fees, so the savings must outweigh these costs.
To refinance, contact banks, credit unions, or online lenders and ask for a rate quote. You will need your current loan information, vehicle details, and proof of income. Once approved, the new lender will contact Westlake to request a payoff amount and handle the loan transfer. The process typically takes one to two weeks.
Frequently Asked Questions
Can I pay off my Westlake loan early without a penalty?
Most Westlake loans do not have a prepayment penalty, meaning you can pay off the loan early without extra charges. Check your loan agreement or contact Westlake to confirm. If you plan to pay off early, ask for a payoff quote that is valid for a specific number of days so you know the exact amount needed, including accrued interest.
What should I do if I receive a notice of repossession?
Contact Westlake when ready to discuss your options. You may be able to catch up on missed payments, request a deferment, or negotiate a modified payment plan. Some states require the lender to give you a chance to cure the default before repossession occurs. If you cannot reach an agreement, consult a local attorney about your rights.
How do I change my payment due date with Westlake?
Log into your online account and look for a payment date change option, or call Westlake's customer service number on your statement. You can usually change your due date once per year. If you need to change it more frequently, ask whether a one-time adjustment is possible.
Will paying off my Westlake loan improve my credit score?
Paying off the loan will not when ready boost your score, but it removes an active debt from your credit report and shows you completed the loan successfully. The positive impact comes from the on-time payments you made during the loan term. Once the loan is paid off, it remains on your credit report for ten years as a closed account in good standing.
What happens if Westlake sells my loan to another company?
Loan sales happen regularly in the auto finance industry. If Westlake sells your loan, you will receive a notice with the new servicer's contact information and instructions for making future payments. Your loan terms do not change — only the company collecting payments changes. Make sure to update your payment method with the new servicer.