News & Analysis as of

Automotive Industry Discrimination

Foley & Lardner LLP

Senate Votes to Roll Back Auto Industry Lending Guidance from Consumer Financial Protection Bureau

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On April 18, the Senate narrowly passed a resolution to roll back certain guidance issued by the Consumer Financial Protection Bureau in 2013 pertaining to auto lending. As previously written about on a Foley & Lardner LLP...more

Bradley Arant Boult Cummings LLP

Five Years Later: Five Takeaways From the Bulletin That Rocked the Auto Finance Industry

In 2013, the Consumer Financial Protection Bureau (CFPB) issued a bulletin on indirect auto lending that took the industry by storm. As we approach the five-year anniversary of the memo’s issuance, it’s valuable to reflect on...more

Hogan Lovells

Should we regulate artificial intelligence?

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Hogan Lovells partner Winston Maxwell spoke on October 12, 2017 at a conference on artificial intelligence organized by the French think tank “Le Club des Juristes”. What follows is an English version of his prepared remarks....more

Ballard Spahr LLP

Third Circuit Expands Liability Under the ADEA for Disparate Impact Claims

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The Third Circuit recently held that the Age Discrimination in Employment Act (ADEA) permits disparate impact claims by older "subgroups" of workers within the law's protected 40-and-over class. Under the court's ruling,...more

Stinson - Corporate & Securities Law Blog

House of Representatives Issues Part II of Report Criticizing CFPB’s Auto Lending Enforcement Efforts

On January 20, 2016, Republican members of the House of Representatives’ Financial Services Committee issued a report titled Unsafe at Any Bureaucracy, Part II: How the Bureau of Consumer Financial Protection Removed...more

McGuireWoods LLP

October Antitrust Bulletin

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On September 8, the U.S. Court of Appeals for the Seventh Circuit granted a motion filed by household products manufacturer Clorox for interlocutory appeal of two decisions by the U.S. District Court for the Western District...more

Ballard Spahr LLP

Director Corday testifies before House Committee on Financial Services

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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...more

Dorsey & Whitney LLP

Why Does the CFPB Want to Curb Auto Lenders’ Discretion to Charge Higher or Lower Interest Rates?

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On July 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) and Department of Justice (“DOJ”) announced they had reached a “groundbreaking settlement” with American Honda Finance Corporation (“Honda”).(1) The...more

McNees Wallace & Nurick LLC

Supreme Court Slams The Brakes On Challenge To Disparate Act

As of now, the Equal Credit Opportunity Act (ECOA) prohibits dealers from unintentional, or “disparate impact,” discrimination in setting dealer reserves in auto financing. This disparate impact can result from policies or...more

Ballard Spahr LLP

Auto Finance Company Agrees to Change Dealer Compensation Policy to Settle CFPB and DOJ Fair Lending Claims

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To resolve charges by the Consumer Federal Protection Bureau (CFPB) and the Department of Justice (DOJ) that it engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA), American Honda...more

Carlton Fields

CFPB Continues Crackdown on Fair Lending: Marketing Materials Targeted

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In a recent guidance bulletin, the Consumer Financial Protection Bureau reminded mortgage lenders to heed their Equal Credit Opportunity Act (ECOA) obligations when considering applicants receiving public assistance income....more

Fisher Phillips

Technology And The Workplace

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How Email And Texting Are Transforming Business Interactions - The automotive industry has embraced technology. Most dealerships have installed business development centers, and Internet departments to attract the...more

Hinshaw & Culbertson LLP

California Jury Awards Over $185M To Victim Of Pregnancy Discrimination and 'Glass Ceiling'

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A manager at AutoZone who complained she was not promoted like her male counterparts, demoted for taking leave to have a child, and eventually fired for filing a discrimination action was awarded damages yesterday of over...more

U.S. Equal Employment Opportunity Commission...

EEOC Sues AutoZone for Harassment Based on National Origin

Hispanic Employee Subjected to Egregious Slurs and Forced to Resign, Federal Agency Charges - WILMINGTON, N.C. - AutoZoners, LLC, the company that operates AutoZone stores nationwide, unlawfully subjected a Hispanic...more

Ballard Spahr LLP

CFPB to issue whitepaper on methodology for identifying auto finance discrimination and consider use of advisory opinions

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While Director Cordray’s appearance at the House Financial Services Committee’s hearing on the CFPB’s fifth Semi-Annual Report yesterday was accompanied by the usual dose of political theater, his testimony did yield the...more

McNees Wallace & Nurick LLC

Auto Notes, Fall 2013: Dealer Markup Practices - In a New Era of Federal Enforcement

In March 2013, the U.S. Consumer Finance Protection Bureau (“CFPB”) announced that it would closely scrutinize dealer reserve (“markup”) practices. The federal concern is that dealer markups may result in an illegal disparate...more

Ballard Spahr LLP

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

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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...more

Ballard Spahr LLP

The CFPB Stretches ECOA Past the Breaking Point with Auto Finance

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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...more

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