Links in “Auto Lending”
- CFPB Focus on Auto Lenders Could Cause Higher Loan Prices
According to the Wall Street Journal, American Honda Finance Company, a unit of Honda Motor Company, recently reached a settlement with the CFPB and the Justice Department over discriminatory loan practices. Following the settlement, Honda lowered one portion of its loansâ interest rates, but then raised the price of another component. Similar overhauls may be expected from other major auto lenders. [9/2/15]
- GM Puts Brakes on CU Discount Program
After almost seven years, GM has announced that it is ending the credit union member discount program that generated 400,000 new credit union loans worth $9.2 billion. An increase in sales had led GM and other auto makers to discontinue other incentive programs as well. [9/2/15]
- What Can Be Learned From Auto Dealer Fair Lending Practices
When it comes to discretionary markups on auto loans, nonbank finance companies are hunkering down for some heavy-duty CFPB scrutiny. Here are some steps the smart ones are taking now to avoid getting in fair lending hot water due to, for example, a subsequent analysis that indicates average financing compensation that is 20 basis points higher for a minority group than for a non-Hispanic white consumer group. [8/27/15]
- eClosing Heading Toward Auto Financing, Too?
The CFPB's interest in eClosing for mortgages may spread toward auto financing also, even though the world of auto finance and mortgages are very different. [8/18/15]
- The CFPB Gives Nada to NADA
NADA requests a CFPB memo that may contain evidence that the bureau is seeking to exercise jurisdiction over franchised auto dealers, which is prohibited under Dodd-Frank. The CFPB says the memo is privileged and therefore protected from public scrutiny. [7/29/15]
- Honda Set to End Discriminatory Lending Against Minorities
Past practices at Honda have cost minority borrowers thousands of dollars in higher interest rates compared to their white peers, with no regard to credit history. The company recently reached an agreement with the CFPB and Department of Justice to reduce discretionary markups by dealerships and implement a new compensation system. The CFPB and DOJ have high hopes that Hondaâs actions will galvanize the rest of the industry to follow suit. [7/15/15]
- Three Major Auto Lenders Poised to Limit Discretionary Pricing
The CFPB is reported to be close to a deal limiting discretionary pricing for three of the nation's largest indirect auto lenders, which it alleges created an environment where minorities were pushed toward higher-rate loans. [7/1/15]
- CFPB Sues Auto Loan Company for Aggressive Debt Collection against Servicemembers
The CFPB provided another reminder of why its not a great idea to use aggressive debt collection methods. Against servicemembers, no less! Security National Automotive Acceptance Company was sued by the CFPB for exaggerating potential disciplinary action they would face, threatening to contact commanding officers to pressure repayment, and falsely threatened wage garnishment. [6/18/15]
- Credit Union Auto Lending Increases Over 20% in 40 States
Aggregate auto loan balances increased by double digits as of March 2015. Nearly every type of lending grew during the first quarter of this year. [5/21/15]
- Servicemembersâ Complaints Calling for Stronger CFPB Crackdown
Lending to military members is an ever-increasing concern, and itâs an area the CFPB has more than cracked down on. But due to a high volume of complaints from servicemembers, veterans, and their families as exposed in a recent report, the CFPB may be coming down even harder. [5/5/15]
