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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.
- February 18, 2015A coalition representing auto lenders says a federal agency should admit it is wrong. The group in a letter to the Consumer Financial Protection Bureau asks it to address its alleged bias and error in an analysis it uses to determine whether disparate impact, or unintentional discrimination, exists in a lender’s portfolio. The coalition says the methodology is flawed, yet the bureau keeps relying...
- December 8, 2014Monica Jackson Office of the Executive Secretary Consumer Financial Protection Bureau 1700 G St., NW Washington, DC 20552 RE: Defining Larger Participants of the Automobile Financing Market and Defining Certain Automobile Leasing Activity as a Financial Product or Service (Docket No. CFPB‐2014‐0024) Ladies and Gentlemen: The Consumer Bankers Association (“CBA”) appreciates the opportunity to...
- September 24, 2014September 18, 2014September 17, 2014CBA Statement on Proposed CFPB Rule on Auto Lenders Washington, D.C. (September 17, 2014) – CBA’s General Counsel Steve Zeisel issued the following statement after the Consumer Financial Protection Bureau (CFPB) released their proposed rule on larger participants in the auto lending market: “Today’s announcement by the CFPB will help to level the supervisory playing field between banks and other...September 17, 2014September 8, 2014An Open letter to the U.S. Congress from the Consumer Credit Industry: Motor Vehicle Finance Creates Opportunity and Drives Economic Growth Over the past few weeks, some in the media have raised alarms comparing motor vehicle finance with the residential mortgage bubble nearly seven years ago. The comparison was quickly and persuasively discredited by the more sophisticated financial press1 and...