Links in “Auto Lending”

In addition to automakers' own lending arms, the probe for discriminatory practices in subprime auto lending has now grown to include Santander and TD Bank. [12/15/14]

Billion Auto and it's advertising company, Nichols Media, Inc. have agreed to pay a civil penalty to the FTC for violating an administrative order from 2012. Jessica Rich of the FTC commented that dealers cannot make claims and simply "take them away in fine print." [12/15/14]

The industry is picking up on a recent report that the CFPB's study used to make its claims of disparate impact on minority borrowers for auto loans was fatally flawed. The study found that the report overestimated African Americans by more than 40%. "If the agency doesn't know a borrower's race accurately, it casts doubt on whether it can detect racial bias." The CFPB counters that there are problems with the study. (Subscription required. To read an unlocked report of the underlying study, click here.) [12/8/14]

The Department of Justice and the CFPB may be going after Honda next for discriminatory pricing of loans made through auto dealerships. [12/4/14]

Credit unions, which are typically known for avoiding lending risk, have been participating in more subprime auto lending, contributing a great amount to the auto credit "boom" of recent months. [10/20/14]

Observant employees at Erie Community Credit Union in Erie, PA, spotted what they believed to be phony auto loans paid to a shell company. Law enforcement is now crediting these employees with helping to bring down a nationwide scam that caused losses to 21 financial institutions, including Navy Federal Credit Union. [10/14/14]

Sixty-one days remain in the comment period for the CFPB's proposed rule to redefine and regulate larger participants within the automobile financing industry. The authority for such a change was granted as part of the Dodd-Frank Act. [10/8/14]

State Employees Credit Union in Raleigh, NC, appears to have discovered the key to a successful pre-approved used auto loan program. Make it easy and convenient for both your member and the dealer. [10/3/14]

CFPB Director Richard Cordray shared an address at the Auto Finance Field Hearing regarding the need for regulatory oversight of the auto financing industry at the federal level. He explained, "given the significance and breadth of this market, it is critical that we keep a watchful eye on how consumers are being treated." Cordray went on to underscore the weight of this industry, stating that many consumers choose to pay their auto loan before credit card or mortgage loans. [9/19/14]

Auto lenders find the CFPB's guidance on its methods for identifying discrimination in auto loans lacking. [9/19/14]