The CFPB and Department of Justice (the “Agencies”) announced recently that they have entered into a settlement with Toyota Motor Credit Corporation (TMCC) to resolve charges that TMCC engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA). The settlement includes TMCC’s agreement to change its so-called “dealer compensation policy” and pay
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Congressional report chronicles and criticizes CFPB auto finance ECOA enforcement activity
By Peter N. Cubita & Christopher J. Willis on
Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, which chronicles in detail the controversial automotive ECOA enforcement initiative of the CFPB with respect to what it characterizes as “dealer markup.” The highly critical nature of the report is encapsulated by its title, which…
Auto finance company agrees to change dealer compensation policy to settle CFPB and DOJ fair lending claims
By Barbara S. Mishkin on
Earlier this month, American Honda Finance Corporation (AHFC) entered into a settlement with the CFPB and the Department of Justice to resolve charges that it engaged in unlawful discrimination in violation of the Equal Credit Opportunity Act (ECOA). The settlement includes AHFC’s agreement to change its auto dealer compensation policy, pay $24 million in restitution,…
Auto dealer trade groups question CFPB guidance
By Alan S. Kaplinsky on
It seems two major auto dealer trade groups share my doubts about whether the CFPB’s position on dealer rate participation will really help car buyers. In a statement responding to CFPB Bulletin 2013-02, the National Automobile Dealers Association and the National Association of Minority Automobile Dealers assert that the CFPB guidance “attempts to force auto…