Latest Auto Lending News
Here are the latest news in the world of consumer auto lending. Stay informed on the latest practices affecting the cost of your next car loan and vehicle.
- Auto Loans Move Into Slow Lane
USA Today 29 Oct 2013
Some financial experts are throwing up a red flag as buyers of new vehicles increasingly spread their payments out over longer periods of time. Data from Experian Automotive indicates that most new-car loans, 41.7 percent, are repaid over a period of 61 to 72 months. But the share of borrowers taking 73 to 84 months to pay for a new auto has jumped by more than 25 percent over the past year to now account for 19.5 percent of the market.
- Lawmaker Wants FTC Inquiry Into Car 'Yo-Yo Financing'
News 92 FM (Houston, TX) 24 Oct 2013
The mid-November deadline set by Sen. Ed Markey (D-Mass.) in a letter to the Federal Trade Commission (FTC) over "yo-yo" auto financing is approaching. The legislator in late October petitioned the agency to launch a new probe into vehicle lending practices that "suggest that some dealers may be engaged in unfair or deceptive trade practices that may be in violation of some of the federal laws within the Commission's jurisdiction."
- Credit Default Rates Increase Nationally
National Mortgage Professional 14 Oct 2013
According to the S&P/Experian Consumer Credit Default Indices, national default rates rose in September. The national composite edged up from 1.34 percent in August to 1.38 percent. Default rates were 1.28 percent for first mortgages, up from 1.23 percent; 0.69 percent for second mortgages, up from 0.57 percent; 1.15 percent for auto loans, up from 1.11 percent; and 3.14 percent for bank cards, up from 3.12 percent.
- Car Problems Top National Consumer Complaint List
Cache Valley Daily (UT) 03 Oct 2013
Automobile-related issues were the top consumer complaint for 2012, according to a report by the Consumer Federation of America (CFA). Among the problems cited were towing disputes and false advertising for new and used cars, confirmed CFA director of consumer protection Susan Grant.
- Lenders Warn Dealers About Bias
Automotive News 02 Oct 2013
Auto lenders have been sending letters to dealerships to inform them that many of their practices suggest a pattern of discrimination against minorities, women, or the elderly.
- Automakers’ Lending Practices Probed by U.S. for Bias
Bloomberg Businessweek 20 Sep 2013
The Consumer Financial Protection Bureau (CFPB) and the Justice Department are investigating the lending operations of several major auto manufacturers, looking for possible discrimination.
- Regulators Ramping Up Fair Lending Enforcement
Credit Union Times 09 Sep 2013
With the National Credit Union Administration and the Consumer Financial Protection Bureau (CFPB) zeroing in on Fair Lending laws and Home Mortgage Disclosure Act (HMDA) data collection this year, credit unions can expect to see additional rules and exams in 2014.
- Avoid Auto Loan Modification Scams
Auto Credit Express 31 Aug 2013
Companies that advertise auto-loan modifications are simply peddling another way for consumers to lose money, writes Steve Cypher for Auto Credit Express.
- ABC News Fixer: Watch Out for 'Yo-Yo' Car Deals
ABC News 28 Aug 2013
Many car buyers are subject to "yo-yo" deals in which a consumer with bad credit goes to a dealership, fills out paperwork, and takes possession of a vehicle that same day. Days or weeks later, however, the consumer may hear from the dealer that the financing has fallen through but that he or she can return the car or come back for further negotiations.
- Military Payday Loan Laws Set for Review, Improvements
Military Times 25 Aug 2013
Consumer protections for troops and their families should be broadened to cover not only payday loans but also products such as overdraft checking, installment loans, and rent-to-own contracts, consumer advocates say.