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CFPB Enforcement and Penalties Bring Industry Reaction
2013-07-19 19:21:08| AutomotiveDigest.com - Automotive Industry News
The first significant penalty from the Consumer Financial Protection Bureau in connection with vehicle financing a development associated with approximately $6.5 million in revenue for two companies. Compliance experts from Reynolds and Reynolds and Dealertrack Technologies explain how the first enforcement action against the vehicle financing industry by the Consumer Financial Protection Bureau might give more detail about the agency's regulatory agenda. The situation between auto dealers, their financing networks and the Consumer Finance Protection Bureau are far from resolved, but dealers need to keep themselves informed of the happenings in order to understand their role in CFPB compliance. [Read more]
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bring
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enforcement
Auto Dealers Face Puzzling Issues under CFPB Rulings
2013-06-22 20:05:42| AutomotiveDigest.com - Automotive Industry News
Editorial Comment: The CFPBs attempt to offer fair auto lending to consumers has become a bump in the road to both sides of the issue, as some of the articles presented here do indicate: As recently as last week, members of Congress sent a letter to the Consumer Financial Protection Bureau (CFPB) indicating that their rulings could hurt consumers more than protect them, calling he auto lending ruling "unrealistic." Auto lending reforms sought by the Consumer Financial Protection Bureau could hurt consumers, congressional Republicans warned today. In a letter sent to the bureau, Rep. Spencer Bachus of Alabama and 34 other U.S. House Republicans said that paying dealerships a flat fee for every auto loan rather than a cut of the interest rate -- which the bureau says is needed to curb bias -- would raise borrowing costs or shut poorer buyers out of the new-car market. "The controls strike us as onerous and unrealistic," the letter said, "and restricting consumer choice is highly problematic." Opinions arise on both sides of the issues arising from guidelines and rulings put forth by the Consumer Financial Protection Bureau, and it promises to get uglier before any resolutions arise from the dust. [Read more]The Article Auto Dealers Face Puzzling Issues under CFPB Rulings appeared first on Automotive Digest.
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issues
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dealers
CFPB Examining Auto Lending Add-Ons
2013-05-07 08:57:19| Auto Dealers - Topix.net
Millions of Americans have auto loans in their names and these products have been some of the most popular types of credit issued since the end of the recession, but it seems that some lenders issuing them may have been conducting some questionable practices as well.
Tags: auto
examining
lending
addons
Automotive Compliance and the New CFPB Rules
2013-04-30 19:59:06| AutomotiveDigest.com - Automotive Industry News
When it comes to automotive compliance to regulations, Automotive Compliance Consultants cautions auto dealers to heed the aggressiveness of the new Consumer Financial Protection Bureau (CFPB) in its indirect, but very real review of automobile dealership financing practices. Discriminatory Markups One of the biggest issues is "discriminatory markups," as cited in an early bulletin from the CFPB. The Consumer Financial Protection Bureau (CFPB) released a bulletin explaining that certain lenders that offer auto loans through dealerships are responsible for unlawful, discriminatory pricing. Potentially discriminatory markups in auto lending may result in tens of millions of dollars in consumer harm each year. Many issues have been raised by compliance experts and dealers as to what is, and is not, in compliance with CFPB regulations. We have gathered some of the experts together to give their opinions of dealer responsibility going forward. [Read more]The Article Automotive Compliance and the New CFPB Rules appeared first on Automotive Digest.
Tags: rules
automotive
compliance
cfpb
CFPB Ruling Could Adversely Affect Dealers and Consumers
2013-03-26 21:21:43| AutomotiveDigest.com - Automotive Industry News
Auto dealership advocates are warning that costs will rise for borrowers if the Consumer Financial Protection Bureau presses banks to curtail auto loan markups determined by dealers. The warning followed the CFPB's bulletin this week that said banks are responsible for discrimination if their partner dealers mark up the interest rates on loans for minority borrowers or engage in other fair lending abuses. The agency is encouraging lenders to adopt a flat-fee model for dealer compensation. But dealer industry representatives said doing so would hurt competition and ultimately boost car prices. Dealer industry representatives, concerned about the new CFPB ruling, encouraging lenders to adopt a flat-fee model for dealer compensation, said doing so would hurt competition and ultimately boost car prices. [Read more]The Article CFPB Ruling Could Adversely Affect Dealers and Consumers appeared first on Automotive Digest.
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