We discuss recent developments concerning fair lending and ancillary products, including the potential industry-wide implications of recent New York and Massachusetts consent orders and our expectations for future CFPB scrutiny in these areas.   We also discuss the CFPB’s recent report that looks at whether the variation in interest rates among subprime auto loans can be

In a new Data Point report, “Subprime Auto Loan Outcomes by Lender Type,” the CFPB looks at how interest rates and default risk vary across different types of subprime lenders, and how much of the variation in interest rates among subprime loans can be explained by differences in default rates.  The CFPB

We discuss the practices found to be unlawful by CFPB examiners in the areas of deposits, auto servicing, and payday lending, identify practical takeaways for avoiding criticism by the “new CFPB,” and share our thoughts on what the findings signal for future scrutiny in these areas by the “new CFPB.”

Ballard Spahr Senior Counsel Alan

After announcing several years ago that it intended to pick up with fair lending enforcement in the indirect auto finance market where the CFPB left off, the New York Department of Financial Services has announced two consent orders with smaller, New York-chartered banks based on the allegation that allowing auto dealers to negotiate the retail

A bill (AB 298) currently awaiting the signature of the Nevada Governor would impose new limits on the terms of consumer vehicle leases and require new disclosures.

Currently, Nevada law on vehicle leasing (NRS Chapter 100) only applies to vehicle leases for business or commercial purposes.  The bill would amend Chapter 100 to

The CFPB recently announced that it has entered into a consent order with Lobel Financial Corporation, a company that purchases and services retail installment sales contracts (RISC) originated by subprime auto dealers, to settle the Bureau’s claims that Lobel engaged in unfair practices in connection with a product referred to as Loss Damage Waiver (LDW). 

Last week, the FTC released two new reports about the agency’s findings from an April 2017 study of consumers’ experiences with the car buying process.  The FTC’s Bureau of Consumer Protection (BPC) authored a summary report called “Buckle Up: Navigating Auto Sales and Financing.”  The BPC, in partnership with the FTC’s Bureau of

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 discriminated against African-American and Hispanic car buyers and engaged in other illegal business practices.  The settlement provides for

The CFPB has released the Summer 2019 edition of its Supervisory Highlights.  The report discusses the Bureau’s examination findings in the areas of automobile loan originations, credit card account management, debt collection, furnishing, and mortgage originations.

Key findings include the following:

Auto loan originations.  Auto lenders were found to have engaged in an abusive

This past Wednesday the House Committee on Financial Services’ Subcommittee on Oversight and Investigations held a hearing titled “Examining Discrimination in the Automobile Loan and Insurance Industries.” As the Majority Staff’s Hearing Memo noted, auto loan debt is the third largest category of household debt, after mortgages and student loans, and Americans now owe $1.26