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Category Archives: Vehicle Loans

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Auto finance: can we really call disparate impact “discrimination”?

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

I want to thank Jeff Sovern over at the Public Citizen Consumer Law & Policy Blog for having an interesting back-and-forth with me over the last week about the application of the disparate impact theory of liability to dealer finance charge participation in the auto sales finance context.  We’ve been debating whether the CFPB’s announced… More >

How the CFPB’s stance on ECOA in auto finance will raise consumer prices

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Ever since the CFPB’s release of its bulletin relating to disparate impact analysis of dealer rate participation last week, the press and consumer advocacy groups have been buzzing about the Bureau’s stance and its potential impact on the industry and consumers.  Alan Kaplinsky and I previously blogged about the bulletin and its associated issues here, here… More >

Auto dealer trade groups question CFPB guidance

By Alan S. Kaplinsky on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

It seems two major auto dealer trade groups share my doubts about whether the CFPB’s position on dealer rate participation will really help car buyers.  In a statement responding to CFPB Bulletin 2013-02,  the National Automobile Dealers Association and the National Association of Minority Automobile Dealers assert that the CFPB guidance “attempts to force auto… More >

The CFPB previews its coming auto finance fair lending enforcement actions

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Earlier today, the CFPB released its guidance bulletin with respect to automobile indirect finance fair lending issues.  The bulletin’s intent is unmistakably clear from the accompanying press release’s tag line: “CONSUMER FINANCIAL PROTECTION BUREAU TO HOLD AUTO LENDERS ACCOUNTABLE FOR ILLEGAL DISCRIMINATORY MARKUP.”  The bulletin is, in my view, a prelude to the fair lending… More >

The CFPB Stretches ECOA Past the Breaking Point with Auto Finance

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

 In a story released last night, Carter Dougherty at Bloomberg reports that the CFPB has warned “at least four banks” that it may take enforcement action against them under ECOA, alleging that a “policy” of “allowing” dealers to negotiate contract APRs with retail buyers had a disparate impact in the pricing of retail installment sale… More >

CFPB lawyer discusses disparate impact in auto financing and says important development to happen soon

By Alan S. Kaplinsky on Posted in Fair Lending, Vehicle Loans

At the ABA Consumer Financial Services Committee meeting earlier this week, Rick Hackett, Assistant Director of the Research, Markets and Regulations Division of the CFPB, spoke about “Discretionary Pricing in Indirect Auto Finance.” Rick made it very clear that the CFPB is sticking to its position that the disparate impact theory applies under the Equal… More >

CFPB describes plans for its auto loan complaint system

By Barbara S. Mishkin on Posted in Vehicle Loans

As we reported, apparently unbeknownst to Director Cordray, the CFPB began taking complaints about student loans and vehicle and other consumer loans on March 1. While announcing the opening of its student loan system on the home page of its website, the CFPB’s first mention of the launch of its complaint system for vehicle and… More >

CFPB expands complaint system: who forgot to tell Director Cordray?

By Barbara S. Mishkin on Posted in Deposit Accounts, Student Loans, Vehicle Loans

In a blog post appearing today on the CFPB’s newly redesigned website, Director Cordray announced that the CFPB is now taking on-line complaints about deposit accounts. According to Director Cordray’s blog post (and the CFPB’s press release about the expansion), the only other complaints currently being taken by the CFPB are credit card and mortgage loan… More >