Links in “Auto Lending”

With consumer borrowing reaching a record high in February, expect scrutiny to grow, especially for the two categories that fueled the growth the most: auto loans and student loans. [4/8/15]

CUNA economists predict that rising interest rates in 2015 and 2016 will lead to higher earnings, improved asset quality, and increasing capital.  New auto loans, purchase money mortgages, and credit cards are expected to show very strong growth. [4/1/15]

Panelists, including CFPB Director Cordray and representatives of consumer advocate organizations, gathered in the "predatory lending capital of the East Coast" (Virginia) to condemn payday and auto title lenders. However, they failed to offer viable alternatives to help consumers who find themselves in need of money and with nowhere else to turn. [4/1/15]

The New York Times takes a look at "reverse-redlining," the practice of singling out minority borrowers for the costliest car loans, which may be increasing the economic distress in minority neighborhoods. [3/31/15]

The FTC and 32 law enforcement partners of the agency announced results of a nationwide and cross-border crackdown to protect consumers when purchasing or leasing a car—Operation Ruse Control. The FTC director highlights importance of truthful, clear ads associated with individual's purchasing a car. Key lessons in marketing "dos" and "do nots" were provided. [3/27/15]

Two car title lenders, First American Title Lending of Georgia, LLC, and Finance Select, Inc., were charged with deceptive advertising. Both companies advertised an interest rate of zero percent for a 30-day car title loan without disclosing important conditions. [2/2/15]

Even if you don't operate in New York or aren't an indirect auto lender, New York's recent action against an indirect auto lender could be a harbinger of how other states may likewise start wielding their Dodd-Frank powers. [1/26/15]

One in four new car loans are 73 to 84 months long, a trend that Honda says is "stupid" for consumers and for the industry. [1/22/15]

Consumer borrowing rose to record levels in October, fueled largely by increases in auto and student loans. [1/9/15]

New York's attorney general settled a UDAAP claim against a large subprime auto lender. The lawsuit was the first brought by a state attorney general under authority granted under Dodd-Frank Section 1042. But it will not be the last. [12/24/14]