Auto Finance

Auto lending is a dynamic market second only to housing in size, with nearly $900 billion in outstanding auto loan balances. Banks hold approximately a third of all auto loan balances, followed closely by captive auto lenders, credit unions and auto finance companies. Under the Dodd-Frank Act, the CFPB has the authority to supervise all depository institutions with more than $10 billion in assets. However, the Bureau has also been granted the authority to supervise “larger participants” in consumer financial markets. The CFPB exercised this authority by issuing a rulemaking proposal to extend its supervisory reach over nonbank auto lenders, such as the captives and auto finance companies. CBA is largely supportive of this effort as consumers should expect to receive the same level of protection no matter where they receive their auto loans.
  • May 23, 2016
    The National Automobile Dealers Association is lining up allies for a fight with the Federal Trade Commission over a proposed survey of consumers regarding their experiences trading in, buying and financing vehicles at dealerships. NADA Vice Chairman Mark Scarpelli told credit union managers at a conference here last week sponsored by CU Direct, "We look forward to working with your regulatory...
  • May 20, 2016
    The CFPB , on Wednesday, May 18, 2016 issued a report finding that one-in-five single-payment auto title loan borrowers have their vehicle seized by their lender for failure to repay. According to the CFPB’s research, more than four-in-five of these loans are renewed on their due date because borrowers cannot afford to repay. More than two-thirds of auto title loan business come from borrowers...
  • April 7, 2016
    April 7, 2016 The Honorable Richard Shelby Chairman, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 Dear Chairman Shelby and Ranking Member Brown: The Consumer Bankers Association (CBA) [1] appreciates the Banking...
  • March 16, 2016
    On Wednesday, March 16, 2016, the House Financial Services Committee held a hearing on the Consumer Financial Protection Bureau’s (CFPB) Semi-Annual Report to Congress featuring testimony from CFPB Director Richard Cordray. Like previous encounters, Republican members of the committee expressed considerable frustration with the Bureau and its leader throughout the hearing. Save comments from Reps...
  • March 16, 2016
    Dear Chairman Hensarling and Ranking Member Waters: The Consumer Bankers Association (CBA) appreciates the Financial Services Committee’s continued oversight of the Consumer Financial Protection Bureau and its activities. We would like to take this opportunity to submit the following comments on the hearing entitled, “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” CBA is...
  • February 26, 2016
    CBA LIVE 2016 – Customize Your Experience Via the App We have a record number of bankers registered, a record number of regulators, and, if we continue our current pace, 2016 will be our sixth straight year of record attendance . With essentially one week to go, we hope you are as excited as we are for CBA LIVE 2016! This week, we launched the CBA LIVE 2016: Leadership Unplugged mobile app. Be...
  • February 12, 2016
    Small-Dollar Lending Gets Presidential Attention Earlier this week, President Obama released his final budget proposal which included a $10 million dollar line-item that would fund a small-dollar loan program through Community Development Financial Institutions. President Obama is right to recognize low-and moderate-income American families often need access to short-term liquidity. But here is...
  • February 2, 2016
    On Tuesday, February 2, 2016, the CFPB announced a settlement , in conjunction with a Department of Justice (DOJ) action , with Toyota Motor Credit Corporation to resolve discriminatory outcomes in auto lending. Under the agreement, Toyota Credit will pay $21.9 million in restitution to African American and Asian or Pacific Islander consumers for pricing disparities from non-Hispanic white...
  • January 29, 2016
    On Friday, January 29, 2016, the CFPB announced the settlement administrator distributed checks to consumers for restitution under the Ally Bank indirect auto settlement. As a reminder, the Ally enforcement action was filed in December of 2013 and ordered Ally to pay $80 million in consumer restitution and $18 million to the CFPB in civil money penalties.
  • January 22, 2016
    Cordray to Offer Keynote at CBA LIVE We are pleased to announce CFPB Director Richard Cordray will join us for CBA LIVE 2016. A man who needs no introduction, Director Cordray will join me on the big stage on Wednesday, March 9, 2016, to discuss all things CFPB. Remember, if you have not registered yet, it is not too late! CBA LIVE 2016: Leadership Unplugged takes place March 7-9 in Phoenix, AZ...

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