CarBarrage™ Lender & Dealer Acceptance Package

Prepared By:
ReCapture Financial, Inc.
Powered by MiddleBanking 1.0

Confidential Institutional Overview
For Lenders, Dealer Groups, Finance Companies, F&I Directors, Compliance Teams, and Strategic Automotive Partners

Executive Overview

CarBarrage™ is the automotive access and marketing channel for DriveFree™, an automotive program available through an Expense Reimbursement Account (ERA) with ReCapture Financial.

DriveFree™ provides approved households with access to Auto Loan Payment Coverage™. The customer keeps the existing vehicle loan, lender, interest rate, remaining term, loan documents, and original payoff date. ReCapture Financial pays the approved covered auto loan amount, up to $1,000 per month, while the household maintains an active ERA and remains active and current in its approved MiddleBanking™ plan.

This creates a distinct relationship between the customer, lender, dealership, and ReCapture Financial:

• The dealer sells the vehicle.
• The lender originates and services the auto loan.
• The customer remains the borrower and vehicle owner.
• ReCapture Financial establishes and administers the customer’s ERA and MiddleBanking™ relationship.
• DriveFree™ provides Auto Loan Payment Coverage™ as a benefit of the customer’s active ERA relationship.

What Is MiddleBanking™?

MiddleBanking™ places ReCapture Financial between the household’s income and its recurring household expenses for purposes of financial organization, bill-pay administration, and Expense Reimbursement Account management.

Rather than evaluating one automobile payment in isolation, ReCapture reviews the household’s complete financial picture through Financial Justification.

That review includes:

• household income,
• income frequency and pay dates,
• monthly household expenses,
• personal spending requirements,
• contracted auto loan payment,
• other recurring financial obligations,
• available household cash flow,
• and the household’s ability to consistently follow its approved weekly MiddleBanking™ plan.

Once approved, the household opens and actively uses an Expense Reimbursement Account through ReCapture Financial.

What Is Auto Loan Payment Coverage™?

Auto Loan Payment Coverage™ is a DriveFree™ benefit available through an active Expense Reimbursement Account.

An approved household may receive up to $1,000 per month toward its approved auto loan payment while it remains active and current under applicable DriveFree™ and MiddleBanking™ requirements.

The customer does not replace the existing auto loan in order to use DriveFree™.

• The lender remains the lender.
• The customer remains responsible under the original loan agreement.
• The vehicle remains with the customer.
• The existing interest rate remains unchanged.
• The remaining loan term remains unchanged.
• The original payoff date remains unchanged.

ReCapture Financial’s role is separate from the lender’s credit and servicing relationship.

Why Would ReCapture Financial Pay the Customer’s Auto Loan Payment?

Because the household has established an ongoing MiddleBanking™ relationship with ReCapture Financial through an active Expense Reimbursement Account.

The household’s recurring weekly funding activity, bill-pay administration, financial organization, ERA activity, and continued participation create an ongoing business relationship with ReCapture Financial.

Auto Loan Payment Coverage™ is a benefit ReCapture Financial provides in connection with that active ERA relationship.

The customer is not purchasing a separate auto loan payment product from the lender or dealership. The automotive benefit exists because the customer has established and continues to actively use an ERA with ReCapture Financial.

Starting Household Requirements

DriveFree™ is designed for established households capable of actively participating in the MiddleBanking™ system.

Current starting requirements include:

• $4,000 to $20,000 in total monthly household and personal expenses,
• head of household participation,
• head of household age 25 or older,
• current full-time employment, active-duty military status, retired military status, or retirement with steady income,
• an active checking account,
• an active auto loan,
• completion of Financial Justification,
• approval of the household’s MiddleBanking™ plan,
• and an active Expense Reimbursement Account.

Auto Loan Payment Coverage™ provides up to $1,000 per month toward the approved auto loan amount. A vehicle payment above $1,000 does not necessarily prevent participation; amounts exceeding the approved coverage remain the household’s responsibility.

Customer Flow

Step 1 — Preliminary Review

The customer provides basic household and vehicle information to determine whether the household appears to meet DriveFree™ starting requirements.

Information may include:

• total monthly household expenses,
• head-of-household status,
• age,
• employment or retirement status,
• vehicle year, make, and model,
• current loan status,
• monthly auto loan payment,
• remaining number of payments,
• and lender.

Step 2 — Open an Expense Reimbursement Account

Customers meeting the starting requirements continue to ReCapture Financial and complete the DriveFree™ intake process.

Step 3 — Financial Justification

ReCapture Financial reviews the household’s income, recurring expenses, auto loan obligation, spending requirements, and overall household cash flow.

Step 4 — MiddleBanking™ Plan

An approved household receives a structured weekly funding plan through which participating household expenses are organized and administered.

Step 5 — Auto Loan Payment Coverage™

Once the applicable DriveFree™ requirements are completed, Auto Loan Payment Coverage™ becomes available through the household’s active ERA.

The household files the applicable Auto Loan Payment Coverage™ claim, and ReCapture Financial reviews and pays the approved covered auto loan amount according to current program terms.

Step 6 — Continued Participation

Coverage continues while the household actively uses its ERA, consistently follows the approved MiddleBanking™ plan, remains active and current, and satisfies applicable DriveFree™ requirements.

Dealer Relationship

CarBarrage™ can introduce DriveFree™ to customers before, during, or after the vehicle finance process without requiring the dealership to administer the customer’s ERA.

The dealership continues performing its normal automotive functions, including:

• vehicle sales,
• vehicle delivery,
• F&I operations,
• lender submission,
• and financing coordination.

ReCapture Financial separately handles:

• DriveFree™ intake,
• household Financial Justification,
• ERA establishment,
• MiddleBanking™ administration,
• Auto Loan Payment Coverage™ administration,
• coverage request review,
• and applicable payment processing.

The dealership does not perform ReCapture Financial’s household review or administer the customer’s ERA.

Lender Relationship

The lender’s contractual relationship with the borrower remains in place.

DriveFree™ does not require the lender to:

• rewrite the existing auto loan,
• change the interest rate,
• extend the remaining term,
• change the original payoff date,
• transfer ownership of the loan to ReCapture Financial,
• or change its ordinary servicing procedures.

The lender continues servicing the loan according to the underlying finance agreement.

ReCapture Financial’s relationship is with the household through its Expense Reimbursement Account and MiddleBanking™ plan.

Why This Can Matter to Automotive Partners

Traditional automotive financing focuses primarily on the transaction and the borrower’s ability to repay the loan.

MiddleBanking™ adds an ongoing household financial-management relationship after the transaction.

Potential benefits of that structure include:

• greater household visibility into recurring obligations,
• organized weekly funding,
• ongoing bill-pay administration,
• continued customer financial engagement,
• an additional reason for customers to maintain their existing vehicle and financing relationship,
• and a differentiated automotive ownership experience.

ReCapture Financial does not guarantee loan performance, delinquency reduction, repossession reduction, or other lender outcomes.

Traditional Refinance Remains Available

DriveFree™ does not prevent a consumer from pursuing traditional auto refinancing.

Customers interested only in refinancing may be referred to participating lending sources. Those lenders independently determine credit requirements, approval, interest rates, payment amounts, and loan terms.

CarBarrage™ therefore provides two distinct automotive pathways:

• DriveFree™ and Auto Loan Payment Coverage™ through an active ERA with ReCapture Financial; or
• traditional auto financing or refinancing through independent lending sources.

Operational Separation

Important Compliance Positioning

DriveFree™ and Auto Loan Payment Coverage™ operate through the customer’s relationship with ReCapture Financial and the customer’s active Expense Reimbursement Account.

Auto Loan Payment Coverage™ is not represented as:

• a new auto loan,
• traditional auto refinancing,
• loan forgiveness,
• debt cancellation,
• GAP insurance,
• credit life insurance,
• a vehicle warranty,
• a service contract,
• or a lender guarantee.

The customer’s existing vehicle loan remains the customer’s contractual obligation. The lender retains its rights under the applicable finance agreement.

Auto Loan Payment Coverage™ is available subject to the household’s approved DriveFree™ structure, active ERA status, Financial Justification, applicable coverage claim review, continued MiddleBanking™ participation, and current program terms.

Institutional Positioning

CarBarrage™ connects automotive customers to DriveFree™, while ReCapture Financial establishes the customer’s Expense Reimbursement Account and ongoing MiddleBanking™ relationship. Approved households gain access to Auto Loan Payment Coverage™, allowing ReCapture Financial to pay the approved covered auto loan amount while the customer’s existing lender, loan terms, vehicle ownership, and contractual loan relationship remain in place.

For institutional, dealership, lender, or strategic partnership inquiries, contact ReCapture Financial through its official business-development channels.