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Category Archives: Auto Lending

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Financial Services Report – Winter 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More

Financial Services Report – Spring 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Credit Reports, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Why another law firm newsletter? Over ten years ago, Will Stern answered that question in the first Editor’s Note of the first Financial Services Report. Some things have changed since then—we no longer print and mail paper copies, and we report on issues that were not even a twinkle in anyone’s eye back then (the… Read More

CFPB’s Two-Year Policy Priorities

Posted in Arbitration, Auto Lending, CFPB, Mortgage, Student Lending

On Thursday, February 25, 2016, the CFPB held a Consumer Advisory Board meeting in which it outlined its forward-looking supervision and enforcement priorities. After the Board meeting, the CFPB published a summary of these priorities that promises the following, among other things, during the next two years: Rulemakings related to arbitration and debt collection; Rigorous… Read More

Financial Services Report – Winter 2015

Posted in Add On Products, Arbitration, Auto Lending, CFPB, Credit Cards, Enforcement Actions, Fair Lending, Indirect Auto Lending, Military Issues, Mobile Payments, Mortgage, Payday Lending, Privacy, Regulatory Developments, Student Lending, UDAAP

We are a full service newsletter, so we offer these can’t-miss Christmas gift ideas for the hard-to-please. Hoverboards are the “It” gift this season, but what about all the poor souls who don’t own one? We’ve devised a remote that lets you seize control from a distance and slam the thing in reverse, toggle forward,… Read More

CFPB Publishes Semi-Annual Rulemaking Agenda

Posted in Arbitration, Auto Lending, CFPB, Credit Reports, Mortgage, Payday Lending, Regulatory Developments, Student Lending

Just in time for the holidays, the CFPB released its Fall 2015 rulemaking agenda on Friday, November 20. The agenda does not include any major surprises, but it does slightly revise the projected timeline for several highly anticipated rulemaking activities. This alert lays out the highlights to consider between doses of turkey, football, and family…. Read More

One-Two Punch: CFPB Indirect Auto and Add-On Product Orders

Posted in Auto Lending, CFPB, Credit Cards, Enforcement Actions

The CFPB announced two new enforcement action settlements on September 28: one for alleged discriminatory auto loan pricing and the other for alleged deceptive credit card add-on product marketing practices. Indirect Auto Settlement: The joint CFPB and DOJ auto-lending enforcement action continues the Bureau’s campaign to regulate auto dealer markups via lender enforcement actions. In… Read More

CFPB Refers Another Auto Finance Company to DOJ on Disparate Impact Allegations

Posted in Auto Lending, CFPB, Disparate Impact

Not long after taking action against American Honda Finance Corporation under the disparate impact doctrine for allegedly discriminatory auto loan pricing, the CFPB has struck again—this time reportedly referring Santander Consumer USA, Inc. to the DOJ based on the same theory. See Santander Consumer USA Holdings Inc., Form 10-Q, 8/10/2015, page 33. Like Honda and… Read More

CFPB Brings First ECOA Disparate Impact Action Post-Inclusive Communities

Posted in Auto Lending, CFPB, Disparate Impact, Enforcement Actions

Just over 18 months after bringing a disparate impact-based ECOA case against Ally Financial (“Ally”) for discriminatory auto loan pricing, the CFPB has struck again—this time taking action against American Honda Finance Corporation (“Honda”). Like Ally, Honda stands accused of discriminatory auto loan pricing stemming from the company’s discretionary pricing and dealer compensation practices, i.e.,… Read More

CFPB Increasingly Aiming “Abusiveness” Claims at Servicemember Products and Services

Posted in Auto Lending, CFPB, Disparate Impact, Enforcement Actions, Military Issues

Are servicemembers more financially vulnerable than the civilians they protect? Recent enforcement actions suggest that, in the CFPB’s view, they are. While the Servicemembers Civil Relief Act (SCRA) provides more financial protections to servicemembers than civilian consumers have, the Bureau has also begun to use the CFPA to assert “abusive” claims in cases involving alleged… Read More

Come One, Come All

Posted in Auto Lending, CFPB, Payday Lending

On June 18, 2015, the CFPB will hold a public meeting of the Consumer Advisory Board to discuss trends and themes in the consumer finance market place.  In particular, the agenda will include the Bureau’s recent proposal to regulate payday loans, auto-title loans, and certain longer-term credit products. As we’ve previously reported, the Bureau is… Read More

Interagency Fair Lending Hot Topics

Posted in Auto Lending, CFPB, Mortgage

This Wednesday, October 22, 2014, federal enforcement and regulatory agencies are hosting an interagency webinar on emerging fair lending issues and hot topics. Representatives from seven agencies—the DOJ, CFPB, FDIC, OCC, Fed, HUD, and NCUA—will participate. The discussion includes the agencies’ expectations for institutions’ compliance management systems and fair lending risk assessments, fair lending risk associated with… Read More

CFPB Proposed Rule: Federal Oversight of Large Non-Bank Auto Finance Lenders

Posted in Auto Lending, CFPB

On September 17, 2014, the CFPB issued a proposed rule which, if adopted, will broaden the CFPB’s enforcement authority to cover non-banks that offer automobile loans to consumers, as long as those non-banks are “larger participants” in the automobile loan market. This would mark the first time that non-bank auto loan companies would be subject… Read More

CFPB Supervisory Highlights Report on Indirect Auto Lending

Posted in Auto Lending, CFPB

On September 17, 2014, the CFPB issued a supervisory highlights report concerning discriminatory practices in automobile lending. The report focused on so-called “indirect auto lending” which the CFPB defines as “when a consumer secures vehicle financing through the dealer, which typically originates the loan to the consumer and arranges financing through a third-party financial institution.”… Read More