Links in “Auto Lending”

The CFPB, in an historic move, has proposed to oversee large nonbank auto finance companies for the first time. Director Cordray says, "many people depend on auto financing to pay for the car they need to get to work," justifying the bureau's proposed expansion of oversight. [9/18/14]

The CFPB's "Tell Your Story" program highlights a servicemember who was targeted by a deceptive auto lending program and decided to take a stand. An investigation into the situation resulted in enforcement action against the lender in 2013, and required the lender to refund nearly $6.5 million to over 50,000 servicemembers. [9/17/14]

H.R. 5403 would nullify the CFPB's 2013 indirect auto finance guidance and require the agency to provide a notice and comment period before issuing any new guidance. [9/12/14]

The 1.4% loan increase in July is the largest monthly increase since August, 2005. Leading the way are new auto loans followed by ARM loans, used auto loans, and unsecured loans. [9/2/14]

Trade group rebuts New York Times editorial that called for the CFPB and FTC to move "swiftly and aggressively" on subprime auto lending. It labeled the editorial as an unfair attempt to paint the industry as a hotbed of deceptive practices. [8/21/14]

CFPB hits First Investors Financial Services Group of Houston with $2.75 million fine for overstating amounts past due and inflating the number of delinquent payments. Company counters that it reported the errors when it found them and was in the process of working with its vendor to correct them. [8/21/14]

Last month, the New York Times investigated the subprime auto lending "bubble" that has been rumored to be appearing thanks to increased lending to consumers with low credit scores who don't have the ability to repay their loans. However, their research shows that the increase is really just returning to a "normal" level after a dip during the crisis years. [8/15/14]

Over the course of two years Duane Akuffo created 17 false auto loan applications, which led to a plunder of more than $357,000. [8/13/14]

Santander Consumer joins General Motors as recipients of Department of Justice subpoenas related to their subprime auto loans, a booming market segment fueled in part by an influx of money from private-equity firms. [8/11/14]

In collaboration with the CFPB, the Department of Justice is going after abuses in the subprime auto lending market. The DOJ has subpoenaed records dating from 2007 from General Motors concerning the securitization of its subprime auto loans. This follows on the heels of an $80 million settlement of a discrimination claim against Ally Bank in its subprime auto lending program. [8/6/14]