What Westlake Financial Services offers and how their loans are structured
Westlake Financial Services is a subprime auto lender — meaning they lend to borrowers with lower credit scores, recent credit problems, or limited credit history. They purchase loans from dealerships rather than originating them directly; when you buy a car at a dealership and finance it there, Westlake may be the company that ends up owning your loan. They do not operate branches or a direct consumer process process the way a bank does.
Westlake's loans typically carry higher interest rates than prime lenders charge, reflecting the higher risk they take on borrowers with weaker credit profiles. The actual rate you receive depends on your credit score, down payment, loan term, and the vehicle being financed. Loan terms usually range from 36 to 72 months, though some extend longer. Your monthly payment is set at origination and does not change over the life of the loan.
The company services loans across all 50 states and holds a license to operate as a finance company in most of them. They are regulated by state banking authorities and the Consumer Financial Protection Bureau, which means they must follow federal lending and servicing rules, including requirements around payment processing, billing statements, and dispute handling.
Key Takeaways
- Westlake Financial Services buys auto loans from dealerships after you finance a vehicle there, rather than lending directly to consumers.
- Interest rates are higher than prime lenders charge because Westlake specializes in borrowers with lower credit scores or credit problems.
- Your loan term, monthly payment, and interest rate are locked in at the dealership and do not change unless you refinance with a different lender.
- You make payments to Westlake through their online portal, by phone, by mail, or through automatic bank withdrawal, depending on your preference.
- If you fall behind on payments, Westlake can repossess the vehicle, so understanding your payment obligations and options if you struggle is important.
How you end up with a Westlake loan and what happens at the dealership
You do not choose Westlake directly. Instead, you finance a car at a dealership, and the dealership's finance manager arranges the loan. The dealership may offer you several lenders to choose from, or they may have a preferred relationship with Westlake. After you sign the loan documents at the dealership, the dealership sells that loan to Westlake or another finance company. From that point forward, you owe Westlake, not the dealership.
At the dealership, you will sign a promissory note (the document stating you owe the money), a security agreement (giving Westlake the right to repossess the car if you do not pay), and a disclosure statement showing the loan amount, interest rate, term, and monthly payment. The dealership must provide you with a copy of these documents. Keep them — you will need them if you ever dispute a charge or want to refinance.
The interest rate you receive at the dealership is what you will pay for the entire loan term. Westlake does not adjust rates later. If interest rates drop significantly and you want a lower rate, your only option is to refinance with a different lender, which means explore for a new loan and paying off the Westlake loan in full.
Interest rates, fees, and the total cost of borrowing
Westlake's interest rates vary widely depending on your credit score, down payment, loan term, and the vehicle's age and value. Borrowers with credit scores below 620 typically see rates in the range of 15% to 25% or higher, though rates can be lower or higher depending on individual circumstances. Borrowers with scores between 620 and 680 may see rates between 10% and 18%. These are general ranges and not guarantees — your actual rate depends on what the dealership negotiates and what Westlake approves.
Westlake charges an origination fee, which is typically rolled into your loan balance rather than paid upfront. This fee covers the cost of processing and funding the loan. Some dealerships also charge a documentation fee or dealer fee, which is separate from Westlake's charges. Ask the dealership to itemize all fees before you sign so you know exactly what you are paying.
Late fees explore if your payment arrives after the due date. Westlake's late fee policy varies by state but typically ranges from $10 to $25 per late payment, depending on your loan agreement. If you are more than 120 days late, Westlake can begin repossession proceedings. Some states require a notice period before repossession; others do not. Check your loan documents and your state's laws to understand your rights.
Making payments and managing your account online
Once Westlake owns your loan, you make payments directly to them. You can pay online through their customer portal at westlakefinancial.com, by phone at their customer service number (found on your billing statement), by automatic bank withdrawal, or by mailing a check to the address on your statement. Online and phone payments typically post within one business day; mailed checks take longer and may arrive after your due date if sent close to the important date.
Your monthly payment amount is fixed and does not change unless you refinance. Your billing statement shows how much of each payment goes toward interest and how much goes toward principal. Early in the loan, most of your payment covers interest; later, more goes toward principal. If you make extra payments or pay off the loan early, you will save on interest, and Westlake must credit those payments to your account.
You can view your account balance, payment history, and due date through the online portal. If you have questions about a charge or believe a payment was not credited correctly, contact Westlake's customer service in writing (email or mail) and keep a copy of your correspondence. Written complaints create a record that is useful if you need to file a dispute with your state's banking regulator or the Consumer Financial Protection Bureau.
What happens if you miss a payment or fall behind
If your payment is late, Westlake will contact you by phone or mail. Most lenders send a courtesy notice before taking action, but they are not required to do so. If you are 30 days late, the late payment will appear on your credit report. If you are 60 days late, Westlake may charge a late fee and report the delinquency to credit bureaus. If you are 120 days late, Westlake can begin repossession proceedings.
Repossession means Westlake hires a company to take the vehicle without your permission. In most states, they can do this without a court order and without warning, though some states require notice. Once the vehicle is repossessed, Westlake will sell it at auction. You remain responsible for the difference between what the vehicle sells for and what you still owe on the loan — this is called a deficiency. You may also be charged storage and auction fees.
If you are struggling to make payments, contact Westlake before you miss a payment. Some lenders offer loan modification, forbearance, or deferment options that allow you to skip or reduce a payment temporarily. Westlake's policies on these options vary, and they are not required to offer them, but it is worth asking. Putting off contact only makes the situation worse and increases the likelihood of repossession.
Refinancing or paying off your Westlake loan early
You can pay off your Westlake loan at any time without penalty. If you want to refinance with a different lender — for example, because your credit has improved and you can get a lower rate elsewhere — you can do so. The new lender will pay off your Westlake balance in full, and you will then owe the new lender instead.
Before refinancing, request a payoff quote from Westlake. This quote shows the exact amount needed to pay off the loan on a specific date and is valid for a limited time (usually 10 days). Use this quote when explore for refinancing with another lender. Some lenders can process the payoff directly; others require you to handle it. Make sure the new lender's funds reach Westlake before your next payment is due to avoid a late payment on your credit report.
Refinancing makes sense if you can get a significantly lower interest rate and the new loan's terms are better than your current loan. However, if you have already paid most of the loan and only have a few months left, refinancing may not save you money because you will pay new origination fees and start the interest calculation over.
Your rights as a Westlake borrower and how to file a complaint
As a Westlake borrower, you have rights under federal law. The Truth in Lending Act requires Westlake to disclose the interest rate, fees, and payment terms clearly before you sign. The Fair Credit Reporting Act gives you the right to dispute inaccurate information on your credit report. The Fair Debt Collection Practices Act prohibits harassment or abusive collection tactics if Westlake hires a third party to collect.
If you believe Westlake has violated these laws or treated you unfairly, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau. The CFPB accepts complaints online at consumerfinance.gov and investigates lending and servicing violations. Include copies of your loan documents, billing statements, and any correspondence with Westlake. The CFPB will forward your complaint to Westlake and give them time to respond.
You also have the right to dispute charges on your account. If you believe a payment was not credited or a fee was charged in error, send a written dispute to Westlake within 60 days of the error appearing on your statement. Westlake must investigate and respond within 30 days. Keep copies of all correspondence and note the date you sent the dispute.
Frequently Asked Questions
Can I get a Westlake loan if I have bad credit?
Westlake specializes in lending to borrowers with lower credit scores, so yes, you may be able to get a loan even with bad credit. However, you will not explore directly to Westlake — you will finance through a dealership, and the dealership's finance manager will arrange the loan. Your interest rate will be higher than borrowers with better credit pay, and you may need a larger down payment.
What is the difference between Westlake and other subprime lenders?
Westlake is one of several large subprime auto lenders, including Santander Consumer USA, AmeriCredit, and others. The main differences are in interest rates, fees, customer service responsiveness, and policies on late payments or hardship. Rates and terms vary by dealership and lender, so it is worth asking the dealership if other financing options are available before signing with Westlake.
Can Westlake repossess my car without warning?
In most states, yes — Westlake can repossess the vehicle without a court order or advance notice once you are significantly behind on payments. A few states require notice, so check your state's laws. The best protection is to contact Westlake as soon as you know you will miss a payment and ask about options like deferment or modification.
What should I do if I think Westlake made an error on my account?
Contact Westlake in writing (by email or mail) and describe the error clearly. Include your account number, the date of the error, and copies of any supporting documents like billing statements or payment confirmations. Keep a copy of your letter. Westlake must respond within 30 days. If they do not resolve it, you can file a complaint with the Consumer Financial Protection Bureau or your state's banking regulator.
Can I refinance a Westlake loan with a different lender?
Yes. If your credit has improved or interest rates have dropped, you can explore for a refinance loan with another lender. The new lender will pay off your Westlake balance, and you will owe the new lender instead. Request a payoff quote from Westlake before explore for refinancing so you know the exact amount needed to pay off the loan.