Auto Finance

Auto lending is a dynamic market second only to housing in size, with nearly $900 billion in outstanding auto loan balances. Banks hold approximately a third of all auto loan balances, followed closely by captive auto lenders, credit unions and auto finance companies. Under the Dodd-Frank Act, the CFPB has the authority to supervise all depository institutions with more than $10 billion in assets. However, the Bureau has also been granted the authority to supervise “larger participants” in consumer financial markets. The CFPB exercised this authority by issuing a rulemaking proposal to extend its supervisory reach over nonbank auto lenders, such as the captives and auto finance companies. CBA is largely supportive of this effort as consumers should expect to receive the same level of protection no matter where they receive their auto loans.
  • February 20, 2015
    CFPB Issues Report on Free Access to Credit Scores On Thursday, February 19, 2015, the CFPB released a study on how consumers access their credit scores and credit reports. The study found about 50 million consumers now have free and regular access to their credit scores through their monthly credit cards statements or online. The report also highlighted some difficulties consumers may have in...
  • February 19, 2015
    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 reserve was “conceptually...
  • February 18, 2015
    A coalition representing auto lenders says a federal agency should admit it is wrong. The group in a letter to the Consumer Financial Protection Bureau asks it to address its alleged bias and error in an analysis it uses to determine whether disparate impact, or unintentional discrimination, exists in a lender’s portfolio. The coalition says the methodology is flawed, yet the bureau keeps relying...
  • February 18, 2015
    February 18, 2015 The Hon. Richard Cordray Director Consumer Financial Protection Bureau 1700 G Street, NW Washington, DC 20552 Dear Director Cordray: The vehicle finance industry is committed to fair lending and equal treatment for every consumer. Illegal discrimination in any form is unacceptable, and we welcome the opportunity to work with the Consumer Financial Protection Bureau (CFPB or...
  • December 8, 2014
    Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1700 G St., NW Washington, DC 20552 RE: Defining Larger Participants of the Automobile Financing Market and Defining Certain Automobile Leasing Activity as a Financial Product or Service (Docket No. CFPB‐2014‐0024) Ladies and Gentlemen: The Consumer Bankers Association (“CBA”) appreciates the opportunity to...
  • September 17, 2014
    CBA Statement on Proposed CFPB Rule on Auto Lenders Washington, D.C. (September 17, 2014) – CBA’s General Counsel Steve Zeisel issued the following statement after the Consumer Financial Protection Bureau (CFPB) released their proposed rule on larger participants in the auto lending market: “Today’s announcement by the CFPB will help to level the supervisory playing field between banks and other...
  • September 8, 2014
    An Open letter to the U.S. Congress from the Consumer Credit Industry: Motor Vehicle Finance Creates Opportunity and Drives Economic Growth Over the past few weeks, some in the media have raised alarms comparing motor vehicle finance with the residential mortgage bubble nearly seven years ago. The comparison was quickly and persuasively discredited by the more sophisticated financial press1 and...

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