Trade groups take aim at NY Times call for CFPB action on subprime auto loans

more+
less-

Two leading industry trade groups have disputed a recent New York Times editorial entitled “When a Car Loan Means Bankruptcy,” which attempted to draw parallels between subprime auto loans and subprime mortgage loans. The editorial concluded with a call to the CFPB and FTC “to move swiftly and aggressively” on subprime auto lending.

In a rebuttal to the editorial, Peter Welch, the president of the National Auto Dealers Association labeled the editorial “an unfair and unfounded attempt to portray the auto lending industry as a hotbed of deceptive practices and a harbinger of insolvency that could lead to another recession.” Mr. Welch indicated that “[n]othing could be further from the truth. Auto loan defaults are at historic lows (less than 1 percent in June).” He commented that “[e]nforcement of existing laws against a small minority of bad players is in everyone’s interest, but smearing an entire industry for the misdeeds of a few is just plain wrong.”

A representative of the American Financial Services Association was reported to have also called the editorial off base and noted that unlike investors who bought subprime mortgages expecting the underlying assets to appreciate, there is no similar expectation for auto loans.

Written by:

Published In:

FTC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×