BETHLEHEM, Pa. — SubPrime Auto Finance News recently confirmed that Wells Fargo Auto Finance is shuttering its auto loan collections operation at Bethehem, Pa., Lehigh Shopping Center in May, which will result in 193 layoffs.

The company's reasoning for the closure is quite simply that Wells Fargo has seen improvements in customers paying off their auto loans.

"We are seeing an improved credit environment; more customers are making their payments on time. Customers are paying off their debts and there is a decreased need for team members in collections," explained Wells Fargo spokesperson Jim Baum.

The company apparently filed a Worker Adjustment and Retraining Notification Act notice with the Pennsylvania Department of Labor and Industry, saying the layoffs would take effect May 29.

The company is planning to relocate 450 customer service associates to the Lehigh Shopping Center location. These associates are leaving an Allentown facility that the company is closing.

According to Baum, auto finance collection associates were told a month ago the layoffs were coming and the company has been working with those impacted to help them apply for other positions within Wells Fargo or find new jobs.

"I believe we have had some hiring and we have an ongoing job interview and placement process," Baum noted.

Apparently the company will be adding some jobs in customer service, but Baum didn't give a number.

Wachovia Bank branches in the state are slated to switch to the Wells Fargo name on April 16.

Wells Fargo acquired Wachovia in 2008 when the latter firm ran into significant mortgage issues in 2008.