The most popular auto exchange in the US, Direct Auto Exchange, has closed its doors.
The company, which also provided financial services, offered a one-time cash-out to customers in November for those who needed help opening an auto loan.
The website had been closed since the end of February, but the company told Reuters on Tuesday that it will reopen once it gets the green light from the federal government.
US President Donald Trump, who has promised to revive the economy, called the company’s closure “unacceptable”.
“We’re going to help the people who need help,” he said at a rally in Ohio on Tuesday.
“They should be able to go into Direct Auto.
The problem with Direct Auto is that they don’t have the money to pay their bills.”
Direct Auto was one of several large auto lenders that received new federal approval last month to help US consumers who could not find affordable financing.
The move by the government is expected to ease the backlog of auto loans in the country, which has been plagued by a sharp drop in auto sales.
Direct Auto had about 100,000 loans outstanding at the end the first quarter of 2018, the lowest quarterly total since 2010.
US auto lenders had a total of $1.18 trillion in outstanding auto loans as of January, according to data from Equifax.
The largest lender, National Auto, reported $1,084 billion in outstanding loans in January, a decline of 2.6% from a year earlier.
Auto loans for sale at a dealership in Washington DC.
The move by Congress, which approved the Direct Auto bailout last month, will allow the company to close down and start anew.
The government has said it will use its authority under the Troubled Asset Relief Program (TARP) to help auto loan companies and companies that are struggling to repay their loans.
The bailout of the companies is expected by many analysts to help ease pressure on the economy.
“This will be a major boost for our economy, which is already suffering from an unprecedented downturn,” US Senator Elizabeth Warren said on Tuesday in a statement.
“Direct Auto is the second largest auto lender in the world,” said Paul Bedard, the Wall Street Journal’s senior economic writer.
“Its closure is a major blow to our auto industry and its workers.”
US auto lenders have been struggling to refinance their loans, as the economy has been struggling since the global financial crisis, and US consumers have struggled to get credit.