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Car Dealerships Consumer Lenders

Hudson Cook, LLP

CFPB Bites of the Month - December 2023 - I'm Dreaming of a Winter Solstice and the CFPB

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In this month's article, we share some of our top "bites" for the prior month covered during the December 2023 webinar....more

BakerHostetler

FTC Not Kidding that Discrimination Violates Section 5

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We all know that discrimination violates various federal and state laws, but the FTC has been insisting for a while now that it also violates Section 5. A recent joint complaint the agency brought with the State of Wisconsin...more

Goodwin

Massachusetts AG Enters Into $7.6 Million Settlement With Auto Dealer

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On February 2, 2023, the Massachusetts Attorney General’s Office (Massachusetts AG) announced that it had entered into a settlement with an auto dealer to resolve allegations that the company engaged in illegal auto loan...more

Hudson Cook, LLP

Is Different Pricing for Non-Credit Products and Services Illegal Discrimination? Yes, Says the CFPB, Massachusetts, and the FTC

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The Consumer Financial Protection Bureau made news this year when it announced that it considered discrimination to be illegal as an "unfair" practice, including in situations where fair lending laws do not apply. In March,...more

Sheppard Mullin Richter & Hampton LLP

CFPB Blog: Stop Overcharging for Auto Loan Add-on Products

On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent, and competitive auto lending market” by calling attention to add-on products for which auto dealers and finance companies “often...more

Hudson Cook, LLP

State Regulator Pursues Disparate Impact in Auto Finance

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Players in the auto finance industry have been watching the Consumer Financial Protection Bureau ping-pong over the last several years regarding disparate impact theories under the Equal Credit Opportunity Act. The disparate...more

Cozen O'Connor

Subprime Auto Loan Company Settles Allegations It Turned Blind Eye To Shady Car Dealers

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Massachusetts AG Maura Healey reached a settlement with subprime automobile finance company United Auto Credit Corporation (“UACC”) to resolve allegations that it facilitated the sale of defective vehicles and forced some...more

Hudson Cook, LLP

CFPB, The Roadmap Forward - Part Three

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Part Three: Risk Reward Will Always be Part of the Subprime Future - We resume our conversation where we left off on Part Two with a question citing the Taskforce report with recommendations for improved financial...more

Hudson Cook, LLP

Navigating the Minefields When Offering a Credit Customer the "Lowest Rate"

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Every day, financing providers offer financing to customers. Sometimes they encourage a customer to apply for credit with the dealer by saying that they can offer the customer the best financing deal. Such a claim got a Ford...more

Hudson Cook, LLP

What You Say May Undo What You Do

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The retail installment sales contracts used by auto dealerships include disclosures related to GAP insurance and other debt cancellation products that are required under the federal Truth in Lending Act in order for the...more

Hudson Cook, LLP

What Does a Biden/Harris Administration Mean for Auto Sales and Finance?

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So, the general consensus is that a Biden/Harris Administration will mean lots of change for automotive finance. But, exactly what types of change and how quickly will that change occur? And, just how bad for the industry...more

McDermott Will & Emery

Automotive Finance Update – The Digital Point of Sale

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Legal aspects to consider when digitalizing the execution of automotive finance contracts at the dealership - In recent years, in order to increase sales, car manufacturers have integrated the provision of finance products...more

Ballard Spahr LLP

DOJ Settles ECOA Claims Against Used Maryland Car Dealership

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The Department of Justice recently announced that it had settled a lawsuit filed in 2019 that alleged a Maryland used car dealership discriminated against African Americans in violation of the Equal Credit Opportunity Act by...more

Ballard Spahr LLP

FTC settles lawsuit against car dealer alleging discriminatory pricing practices

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The FTC recently announced a settlement of its lawsuit filed in a New York federal district court against a New York City car dealership and its individual general manager in which the FTC alleged that the defendants...more

Goodwin

Massachusetts AG Announces Settlement with Used Car Dealership for Alleged Deceptive Sales Practices

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On November 19, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled its investigation into a used car dealership’s allegedly unfair and deceptive sales practices in violation of the...more

Hudson Cook, LLP

Old Whine in a New Bottle

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Two recent events got me thinking. The first was a new car purchase. Finally persuaded that the newer cars had safety features that were truly life-saving and accident-reducing, my wife and I opted to replace the old bus...more

Bradley Arant Boult Cummings LLP

Data Modeling Remains Auto Finance Target in CFPB’s Fair Lending Governance

The Consumer Financial Protection Bureau made it clear that it will continue to target auto finance lenders as one of its top supervisory and enforcement priorities in the Fair Lending Report of the Bureau of Consumer...more

White & Case LLP

Consumer financial services: The road ahead: Auto finance

White & Case LLP on

In 2018, the CFPB continued to pay attention to the auto finance industry, with a particular focus on indirect (dealer-arranged) auto lenders and unfair or abusive loan servicing practices....more

Ballard Spahr LLP

FTC sends 2018 annual ECOA report to CFPB

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The FTC has sent its annual letter to the CFPB reporting on the FTC’s activities related to compliance with the Equal Credit Opportunity Act and Regulation B. ...more

BCLP

FTC and CFPB – Watching Add On Products in Auto Financing and Other Contexts

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The holidays are a time for deals — rebates, discounts and special financing offers. Especially prevalent are automobile advertisements with images of big red bows atop shiny new cars and exhilarated families dashing out into...more

Ballard Spahr LLP

New York City adopts new requirements for used car dealers

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The New York City Department of Consumer Affairs (DCA) has adopted new rules for used car dealers, requiring all licensed dealers to make additional disclosures to consumers and creating a new consumer bill of rights for the...more

Poyner Spruill LLP

Indirect Auto Lending Anti-Discrimination Regulation Meets the Congressional Review Act

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With the stroke of a pen, President Trump nullified the 2013 informal guidance on “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act” (Guidance) issued by the Consumer Financial Protection Bureau...more

Goodwin

Trump Repeals CFPB’s Indirect Auto Lending Guidance

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One month after the U.S. Senate and U.S. House of Representatives voted to repeal of the Consumer Financial Protection Bureau’s (CFPB’s) indirect auto lending guidance under a Congressional Review Act challenge, President...more

Ballard Spahr LLP

Congress disapproves CFPB Bulletin concerning discretionary pricing by auto dealers

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We previously reported that Congress might have the opportunity to disapprove the CFPB’s disparate impact theory of assignee liability for so-called auto dealer “markup” disparities because the CFPB Bulletin describing its...more

Hogan Lovells

Novel use of the Congressional Review Act to repeal CFPB Indirect Auto Lending Guidance

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On April 18, the Senate voted to repeal the Consumer Financial Protection Bureau's (CFPB) 2013 Guidance on Fair Lending Practices to Indirect Auto Lenders (2013 Guidance) using the Congressional Review Act (CRA). The vote was...more

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