Links in “Auto Lending”
- Risky Auto Debt Market Living Up to Its Name
Investors have been snapping up billions of dollars of securities backed by risky auto debt. Now more subprime borrowers are failing to make their payments on time. [2/23/16]
- No Lender Too Small to Fly Beneath CFPB’s Radar
Auto dealer in Colorado offered financing to about 1,000 people each year. Despite the small volume, it attracted CFPB's attention. Here are the unfair, deceptive, or abusive acts or practices that caught the bureau's eye. [1/25/16]
- CFPB’s Internal Documents Acknowledge Vulnerability of Auto Lending Disparate Impact Claims
GOP members of House Financial Services Committee report on internal CFPB documents that acknowledge areas of potential vulnerability in its efforts to support disparate impact claims against indirect auto lenders. [12/8/15]
- Is CFPB’s Push to Reform Auto Finance Even Legal?
When Dodd-Frank was being formed, auto dealers had successfully lobbied to deprive CFPB jurisdiction over auto dealer financing. But that hasn't stopped the CFPB. What happened? [12/2/15]
- $70 Billion in Auto Loans to “Bad” Borrowers: Recipe for Disaster?
About $70 billion in auto loans were originated to borrowers with credit scores below 620, a score that is considered "bad," over the six months through September. Regulators are getting concerned about the subprime auto loan market. [11/20/15]
- Price Tag for Auto Lender’s Aggressive Collection Against Servicemembers? $3.28 Million
Auto lender exaggerated the potential disciplinary action that servicemembers would face, contacted and threatened to contact commanding officers, threatened to garnish servicemembers wages and misled servicemembers about imminent legal action. [10/30/15]
- NCUA Hosting Auto Lending Webinar
The NCUAâs Office of Small Credit Unions is hosting a free webinar on Wednesday, November 18th at 2:00 EST that is designed to assist credit unions in being more competitive in the auto lending market. A panel of experts will discuss strategies for harvesting auto loan refinances and building portfolios by making more loans to applicants with low credit scores while managing the risk of non-prime loans. [10/29/15]
- Auto Dealers In Hot Water For Misleading Advertising
The Federal Trade Commission (FTC) has approved final consent orders against two Las Vegas auto dealers for misrepresenting the cost of cars in advertising, including the promotion of heavily discounted prices which were not generally available to consumers. [10/21/2015]
- Auto-Lending Discrimination and Illegal Credit Card Practices Prove Costly for Prominent Regional Bank
Fifth Third Bank, which operates roughly 1,300 branches in twelve states, is the subject of joint enforcement actions by the Department of Justice and the CFPB. As a result of an auto-lending enforcement action that rose from an Equal Credit Opportunity Act examination, the bank will pay $18 million to minority status borrowers and revise its pricing and compensation systems to protect against discrimination. In addition, due to an action for deceptive marketing of credit card add-on products, it will pay approximately $3 million to aggrieved customers and incur a $500,000 penalty.   [9/29/15]
- Why the CFPB Singles Out Dealer Markup
While there are many aspects of purchasing a car, such as price or trade-in value, where consumers could be discriminated against, the CFPB has set its sights on dealer markup, the difference between the rate set by the lender and the one agreed to by the borrower. Here's why. [9/25/15]
