YCC is an abbreviation for Yes Car Credit; it means that the financial institution offering yes car credit does no reject car credit to its client under this plan. The client with bad or poor credit scores are usually targeted by this plan. YCC was a section that furnished finance to the people to purchase used cars which the company itself provided to them. But this system backfired severely and so the scheme of Yes Car Credit has been taken away from the road since December 2006.

The aftermath of the Yes Car Credit scheme can be felt till date. There are several clients who are still expressing their resentment that they have been cheated at the time of obtaining funds form the lender. And also the cars provided by the lenders are not in good condition. Also the routes being used by the loaners to get their repayment are quite aggressive and illegal.

As the yes car credit scheme had offered, the cars bought by the clients with the loaned money would be returned to them if they pay half the amount in cash and then there would be no need to pay any amount in cash to the company. But this scheme had many hidden terms and conditions which were not revealed to the client by the companies clearly. These terms and conditions enclosed overpriced warranty and insurance policies. So, the customers were handed high bills for these insurances and policies (for instance, several clients were charged for the GPA policy). Cost of insurance and other policies were computed separately thus making it altogether a new and different loan for the client. To sum up the YCC exerted extra concealed liabilities to the clients which were totally unfair.

Obviously, the company received less margin or profit on the selling of the car so they shifted towards these insurances and polices to make high profits. The insurances and the policies sold to the clients were:

1. GAP insurance

2. Policies for payment protection, and

3. Warranties

In fact, cars should have been free from these unfair liabilities, but they weren’t. People who had opted for YCC policy received regular phone and mail threatening if they happened to miss their payment schedule. Other malady that aggravated the situation was poor quality cars. Maximum clients experienced some sort of problem in their cars. All these factors played a major role in collapse of YCC scheme.