CFPB Monitor News Guidance Perspectives of CFPB | Ballard Spahr Law Firm Blog

Category Archives: Auto Finance

Subscribe to Auto Finance RSS Feed

Republican members of House Financial Services Committee release new report on CFPB’s auto finance actions

Posted in Auto Finance, CFPB Enforcement, CFPB People, Fair Credit, Fair Lending

Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, titled “Unsafe at Any Bureaucracy, Part III: The CFPB’s Vitiated Legal Case Against Auto Lenders.”  This is the third Republican Staff report examining the automotive ECOA enforcement actions of the CFPB with respect to what… More >

CFPB issues Fall 2016 Supervisory Highlights; Ballard to hold Dec. 2 webinar

Posted in Auto Finance, CFPB Exams, Credit Reports, Debt Collection, Fair Lending, Mortgages

In its Fall 2016 Supervisory Highlights, which covers supervision work generally completed between May and August 2016, the CFPB highlights violations found by its examiners involving origination and servicing of auto financing, debt collection, mortgage origination and servicing, student loan servicing, and fair lending. On December 2, 2016, from 12 p.m. to 1 p.m ET,… More >

CFPB unveils Know Before You Owe auto loan initiative; issues report on consumer auto financing experiences

Posted in Auto Finance

The CFPB has unveiled its latest “Know Before You Owe” initiative aimed at consumers shopping for an auto loan.  The new initiative was accompanied by the CFPB’s release of a report entitled “Consumer Voices on Automobile Financing” that is intended to share the CFPB’s research about how consumers approach decisions about auto financing. The CFPB’s overall… More >

Ballard attorneys to receive 2016 Distinguished Legal Writing Award for auto finance disparate impact article

Posted in Auto Finance, Fair Credit

I am proud to report that Ballard attorneys Peter N. Cubita and Christopher J. Willis have been selected to receive a 2016 Distinguished Legal Writing Award from The Burton Awards, which recognize outstanding legal writing.  They are being honored for their article entitled “Auto Finance and Disparate Impact: Substantive Lessons Learned from Class Certification Decisions,” which… More >

Director Cordray defends CFPB positions in appearance before Senate Banking Committee; comments on small business lending and Fintech companies

Posted in Auto Finance, CFPB Enforcement, Fair Credit, Payday Lending, Small Business

Much of Director Cordray’s testimony in his appearance before the Senate Banking Committee yesterday consisted of his predictable defense of various CFPB positions.  While the hearing was much less contentious than last month’s hearing of the House Financial Services Committee at which Director Cordray appeared, the questions raised by Republican Senators focused on many of the… More >

PLI’s “The CFPB Speaks” Panel Discussion

Posted in Arbitration, Auto Finance, CFPB Enforcement, CFPB General, CFPB People, CFPB Rulemaking, Hot Issues

On April 4, at the Practicing Law Institute’s (“PLI”) 21st Annual Consumer Financial Services Institute in Manhattan, Alan Kaplinsky (a co-chair of the institute) moderated a panel entitled “The CFPB Speaks,” where CFPB officials shared their own insights on industry trends on their radar, priorities for the coming years, and views on certain hot-button issues…. More >

Another auto finance company agrees to change dealer compensation policy to settle ECOA claims alleged by CFPB and DOJ

Posted in Auto Finance, Fair Credit

The CFPB and Department of Justice (the “Agencies”) announced recently that they have entered into a settlement with Toyota Motor Credit Corporation (TMCC) to resolve charges that TMCC engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA).  The settlement includes TMCC’s agreement to change its so-called “dealer compensation policy” and pay… More >

CFPB announces consent order with buy-here pay-here used car dealer

Posted in Auto Finance, CFPB Enforcement

The CFPB has announced that it has entered into a consent order with a Colorado buy-here pay-here used car dealer to settle charges that the dealer’s sales and advertising practices violated the Truth in Lending Act and the Consumer Financial Protection Act prohibition of unfair, deceptive, or abusive acts or practices.  The consent order requires the dealer… More >

Congressional report chronicles and criticizes CFPB auto finance ECOA enforcement activity

Posted in Auto Finance, CFPB Enforcement, Fair Credit

Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, which chronicles in detail the controversial automotive ECOA enforcement initiative of the CFPB with respect to what it characterizes as “dealer markup.”  The highly critical nature of the report is encapsulated by its title, which… More >

House passes bill to nullify CFPB indirect auto finance guidance

Posted in Auto Finance, Fair Credit

Yesterday, by a vote of 332-96, the House of Representatives passed H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act,” which would nullify the CFPB’s indirect auto finance guidance issued in March 2013 and require the CFPB to provide for a notice and comment period before issuing any new guidance on indirect auto finance. … More >

CFPB Orders Indirect Auto Finance and Title Loan Companies to Pay $48.35 Million in Redress and Penalties For Abusive Debt Collection Practices

Posted in Auto Finance, CFPB Enforcement, Debt Collection

The CFPB has entered into a consent order with Westlake Services, LLC, an indirect auto finance company, and its wholly owned subsidiary, Wilshire Consumer Credit, LLC, for alleged deceptive debt collection practices. The consent order requires the companies to provide $44.1 million in redress and balance relief to borrowers and imposes a civil money penalty… More >

Director Corday testifies before House Committee on Financial Services

Posted in Arbitration, Auto Finance, CFPB General, Mortgages, Payday Lending, TILA / RESPA

On Wednesday, September 29, CFPB Director Richard Cordray appeared before the House Committee on Financial Services to answer questions regarding the Bureau’s activities since March. Director Cordray used his introductory remarks to highlight the expansion of the marketplace for consumer credit over the last year. He specifically noted increases in home mortgage lending, auto loan origination… More >

Director Cordray to testify tomorrow before House Committee on Financial Services

Posted in Arbitration, Auto Finance, CFPB General, Fair Lending, TILA / RESPA

On Tuesday, September 29, Director Cordray will testify once again before the House Committee on Financial Services at 10 am.   The Hearing is entitled “The Semi-Annual Report of the Bureau of Consumer Financial Protection”. While I’m not expecting Director Cordray ‘s prepared remarks to announce any new development, it seems likely that he’ll be… More >

House Financial Services Committee passes CFPB-related bills including bill creating TRID Rule hold harmless period

Posted in Auto Finance, CFPB Exams, Mortgages

Yesterday, the following four CFPB-related bills were passed by the House Financial Services Committee: H.R. 3192, the “Homebuyers Assistance Act”: The bill would provide a hold harmless period for the TILA/RESPA Integrated Disclosure (TRID) rule that is scheduled to go into effect on October 3, 2015.  Although the CFPB recently delayed the effective date of… More >

Auto finance company agrees to change dealer compensation policy to settle CFPB and DOJ fair lending claims

Posted in Auto Finance, CFPB Enforcement, Fair Credit

Earlier this month, American Honda Finance Corporation (AHFC) entered into a settlement with the CFPB and the Department of Justice to resolve charges that it engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA).  The settlement includes AHFC’s agreement to change its auto dealer compensation policy, pay $24 million in restitution,… More >

CFPB finalizes rule to supervise nonbank auto finance companies and releases auto finance examination procedures for banks and nonbanks

Posted in Auto Finance

The CFPB issued a final rule on June 10, 2015 allowing it to supervise nonbank companies that qualify as “larger participants of a market for automobile financing.”  Relatedly, it adopted simultaneously a separate rule defining certain automobile leases as a “financial product or service.”  These rules will be effective 60 days after their publication in… More >

Focal points for banks and nonbanks in the CFPB’s new auto finance exam procedures

Posted in Auto Finance

Yesterday, the CFPB finalized its larger participant rule for nonbank auto finance companies, making them subject to supervision after the effective date of the rule.  But the Bureau’s press release and newly-released auto finance examination procedures, to me, are even more significant, because they signal areas of future concentration for the Bureau in examinations of… More >

Ballard attorneys author article on auto finance and disparate impact

Posted in Auto Finance, Fair Credit

In several blog posts and legal alerts, we have previously written about disparate impact and auto finance.  Together with our colleague, Jonathan Selkowitz, we have recently written an article on “Auto Finance and Disparate Impact: Substantive Lessons Learned from Class Certification Decisions.” The article, which was published in the May 1, 2015 edition of the Consumer… More >

Trade groups urge CFPB to respond to AFSA vehicle sales finance study

Posted in Auto Finance, Fair Credit

Five prominent industry trade groups sent a letter to the CFPB yesterday seeking “to engage the CFPB in a constructive dialogue” on the study of indirect auto financing commissioned by the American Financial Services Association.  The study, which was conducted by Charles River Associates, found that the CFPB’s proxy methodology for measuring disparities in auto dealer… More >

AFSA vehicle sales finance study finds significant flaws in CFPB disparate impact methodology and approach

Posted in Auto Finance, Fair Credit

A study of indirect auto financing commissioned by the American Financial Services Association found that the CFPB’s proxy methodology for measuring disparities in auto dealer reserve is “conceptually flawed in its application and subject to significant bias and estimation error.”  Among the study’s other key findings was that the CFPB’s preferred alternative dealer “compensation” methods, namely… More >

CFPB releases report on fair credit exams and white paper on proxy methodology

Posted in Auto Finance, CFPB Exams, Fair Credit

Along with its proposed larger participant rule for the auto financing market, the CFPB recently issued a special edition of Supervisory Highlights (“report”) describing its fair credit supervisory activity in what it characterizes as “the indirect automobile lending market.” The report indicates that CFPB supervisory examination teams have been conducting targeted Equal Credit Opportunity Act… More >

CFPB may provide details on auto finance disparate impact methodology at tomorrow’s field hearing

Posted in Auto Finance, Fair Lending

Since the CFPB issued its guidance on indirect auto finance in March 2013, lawmakers and industry have been asking the CFPB to provide details concerning its methodology and proxies for analyzing potential fair lending violations. While the CFPB has provided some information in response to letters from lawmakers, its responses have left many questions unanswered…. More >

House members propose bill to nullify CFPB indirect auto finance guidance

Posted in Auto Finance

A bipartisan group of fourteen House members have introduced a bill (H.R. 5403) that would nullify the CFPB’s indirect auto finance guidance issued in March 2013 and require the CFPB to provide for a notice and comment period before issuing any new guidance on indirect auto finance.  Entitled the “Reforming CFPB Indirect Auto Financing Guidance… More >

Director Cordray to testify at Sept. 9 Senate hearing

Posted in Auto Finance

The Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing tomorrow on “Wall Street Reform: Assessing and Enhancing the Financial Regulatory System.”  The list of witnesses includes CFPB Director Richard Cordray.  He is likely to be questioned about upcoming CFPB initiatives, including the proposed larger participant rule for auto finance that the… More >