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.
- Justice Department Teams With CFPB in Probe of Possible Discriminatory Auto Financing
Washington Post 15 Nov 2013
Government regulators are launching efforts to prevent car dealers from jacking up the cost of financing to women and minorities. Dealers can mark up the interest rate on vehicle loans arranged through lenders, which can increase the profit on a sale by hundreds of dollars. Advocacy groups have been warning, however, of disparities in the number of black and Latino borrowers subjected to these higher fees; and they question whether the practice is tantamount to illegal, unfair lending.
- Cordray Vows 'Openness' with Auto Lenders
American Banker 13 Nov 2013
Consumer Financial Protection Bureau Director Richard Cordray acknowledged concerns Nov. 12 about how the agency is regulating indirect auto lenders, promising to be more transparent about its oversight.
- Ally Financial Warns of Auto-Lending Probe
Wall Street Journal 06 Nov 2013
Ally Financial Inc. disclosed this week in a regulatory filing that the Consumer Financial Protection Bureau (CFPB) is increasing its scrutiny over its auto lending practices. The agency has notified Ally that it had not taken adequate steps to prevent auto dealers from violating laws against lending bias, according to the filing.
- CFPB Continues Crackdown on Auto Lending Industry
American Banker 05 Nov 2013
Several auto lenders being probed by the Consumer Financial Protection Bureau for potential fair lending violations are being referred to the Department of Justice, sources say. Sources said at least three lenders, which have not been publicly identified, have been notified by the CFPB about the referral.
- Many Used-Car Loans Are Lemons
MarketWatch 04 Nov 2013
Used-car buyers paid an average of 8.56 percent the second quarter to finance their purchase, compared to 4.46 percent for buyers of new vehicles, according to Experian.
- 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.