The holidays came early for the financial services industry. First, the Senate voted to repeal the CFPB’s rule banning class waivers in arbitration agreements in consumer financial contracts. Then, Richard Cordray stepped down as CFPB Director. Former Director Cordray’s attempt to name his interim successor hours before submitting his formal resignation created dueling interim directors… Read More
Category Archives: Auto Lending
Subscribe to Auto Lending RSS FeedFinancial 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, UDAAPHope 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, UDAAPWhy 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 LendingOn 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, UDAAPWe 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 LendingJust 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 ActionsThe 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 Overestimates Potential Discrimination, Documents Show
Posted in Auto Lending, CFPB, Disparate Impact, Fair LendingMorrison & Foerster Of Counsel Joe Rodriguez was quoted in the American Banker article, “CFPB Overestimates Potential Discrimination, Documents Show.” Read the article here (by subscription only).
CFPB Refers Another Auto Finance Company to DOJ on Disparate Impact Allegations
Posted in Auto Lending, CFPB, Disparate ImpactNot 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 ActionsJust 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 IssuesAre 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 LendingOn 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, MortgageThis 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, CFPBOn 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, CFPBOn 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