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.
- Car Dealers No Longer Fear Bruised Credit
USA Today 10 Jul 2013
For the auto industry and car dealers across the nation, sustained sales growth made last month the best June since 2007. This is partly due to the ready availability of credit for new- and used-car buyers, even so-called subprime borrowers. Web Link
- U.S. Bank to Pay Back Military Customers as CFPB Cracks Down
Bloomberg BusinessWeek 27 Jun 2013
U.S. Bancorp (USB) and a partner company, Dealers' Financial Services (DFS), will repay roughly $6.5 million to settle Consumer Financial Protection Bureau (CFPB) claims that...
- TransUnion: Auto-Loan Delinquency Rate Rose in Q1
MarketWatch 25 Jun 2013
The first-quarter national auto-loan delinquency rate rose slightly from a year earlier, due primarily to an increase in delinquencies for subprime borrowers, reports TransUnion Corp.
- House Democrats Seek Details on Consumer Bureau Auto Loan Rules
Bloomberg 30 May 2013
In a letter to the Consumer Financial Protection Bureau, 13 Democratic members of the House Financial services Committee requested details on how the agency plans to enforce new rules on auto loan bias...
- CFPB Targets Discrimination in Auto Loan Battle
American Banker 16 May 2013
The Consumer Financial Protection Bureau is laying the groundwork to bring enforcement actions against auto lenders that pay bounties to brokers to steer borrowers toward high-cost loans, on the grounds that the markups are discriminatory because they are steeper for minorities than for whites...
- Households Cut Overall Debt, But Student Loans Jump
Wall Street Journal 14 May 2013
U.S. households lowered their debt loads during the year's first quarter, although student loan borrowing continued to climb, according to a report from the Federal Reserve Bank of New York. Total indebtedness fell by 1 percent from the previous quarter to $11.23 trillion. Total mortgage debt was down to $7.93 trillion, from $8.03 trillion in the three months prior; while credit card balances fell by $19 billion to $660 billion. Auto loans, however, were up by $11 billion; and student loan borrowing snowballed by a staggering $20 billion...
- Americans Are Borrowing Again But Still Less Than Before Freeze
Wall Street Journal 08 May 2013
According to the Federal Reserve's survey of senior bank-lending officers, 28 percent of banks reduced the cost of credit lines early this year to smaller businesses that have annual sales of less than $50 million. Similarly, residential lending began creeping up last year, and even individuals with poor credit are more able to buy a car today than they have been in recent year...
- Regulators Scrutinize Auto Lenders Over Add-Ons
Wall Street Journal 03 May 2013
The Consumer Financial Protection Bureau has issued subpoenas to U.S. auto lenders over the sale of extended warranties and other financial products, expanding a civil probe that could put the brakes on the thriving vehicle-finance industry. Although such products are legal, regulators are investigating whether terms and costs -- which typically are built into the total purchase price -- are adequately disclosed...
- Edmunds.com: Cash for Clunkers Better Than High-Interest Car Loans
Los Angeles Times 11 Apr 2013
A recent investigation by Edmunds.com delved into the Buy Here Pay Here (BHPH) industry, which has been criticized for charging interest rates approaching 30 percent, requiring steep down payments, and repossessing vehicles at a high rate. In “The Debt-Free Car Project,” researchers purchased a 17-year old used Lexus outright, drove it for a year, sold it, and then compared the total out-of-pocket costs to a BHPH loan on a newer car...
- Car Dealers Fight Back Against CFPB Auto Financing Rule
American Banker 25 Mar 2013
Auto dealership advocates are warning that costs will rise for borrowers if the Consumer Financial Protection Bureau presses banks to curtail auto loan markups set by dealers. The red flag followed the CFPB's new bulletin that said banks are liable for discrimination if their partner dealers mark up the interest rates on loans for minority borrowers or otherwise violate fair lending laws...