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New Federal Bureau Looks at Auto Dealership Lending Practices
2013-03-23 18:12:00| AutomotiveDigest.com - Automotive Industry News
Auto dealers may not be aware of a new federal agency, the Consumer Financial Protection Bureau, initiated under the Obama administration. As recently as last week, a federal consumer regulator from the Bureau issued a bulletin saying that some lenders offering auto loans through auto dealerships are charging minorities above-market interest rates and has warned that it will crack down on a profit-sharing practice between dealers and lending companies. The CFPB would force auto lenders "into changing the way they compensate dealers without any indication that the bureau has examined the effect this change could have on the cost of credit for consumers," the National Automobile Dealers Association and National Association of Minority Automobile Dealers said in a statement. The new Consumer Financial Protection Bureau is reportedly taking a close look at auto lenders and potential discriminatory practices that could occur between dealerships and their lenders which would adversely affect consumers. [Read more]The Article New Federal Bureau Looks at Auto Dealership Lending Practices appeared first on Automotive Digest.
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Category:Automotive