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.
- Consumer Bureau Reaches Out to Military Families
New York Times 07 Sep 2011
Regulators took note that military households were proving to be especially vulnerable to financial rip-offs following the financial crisis. After gathering information about unscrupulous mortgage lending practices, deceptive car loans, and other abusive financial products, the newly opened Consumer Financial Protection Bureau wants to hear from military families about what they found to be the best financial products and services tailored to them. According to the assistant director of the CFPB's Office of Servicemember Affairs, Holly Petraeus, the division is looking for information on homeowner assistance programs, such as loan modification services; financial education opportunities; and marketing and communication strategies. "Military families face unique challenges especially when it comes to their finances," Petraeus says. "By identifying the products and services that aim to assist their particular needs, our office will be able to better serve service members and their families." Comments from the public will be accepted via e-mail through Sept. 20.
- U.S. Lenders Offer More Subprime Auto Loans
GoBankingRates.com 30 Aug 2011
According to a new report from Experian Automotive, lenders are offering car buyers a larger number of subprime auto loans. The trend is a marked reversal from the tentative approach adopted several years ago after the industry lost money during the financial meltdown. Experian Automotive calculated that the number of car loans issued to subprime borrowers increased to 40.8 percent in the second quarter of the year, up from 37.2 percent a year earlier. According to the firm, the data reveals lenders are now eager to boost their loan books amid a stagnant U.S. economy. The likely reason behind the increase in loan disbursement is that car loans are perceived as a safer lending choice.
- Top 10 Consumer Complaints
CNNMoney.com 27 Jul 2011
Unscrupulous auto dealers once again nabbed the top spot on the Consumer Federation of America's list for the highest number of complaints in 2010, followed by credit card issuers and debt relief companies in the number two position. The CFA compiles its list by polling 31 consumer groups from 18 states throughout the United States about the grievances they received. In total, the agencies surveyed received more than 252,000 complaints last year and delivered more than $208 million in restitution and savings for consumers. Complaints about home improvement/construction and retail sales tied for the third slot on the list. Rounding out the top 10 were complaints about utility service issues and billing disputes; inadequate work and misrepresentation about licensure by service companies; Internet sales scams; faulty furniture or appliance repairs; illegal eviction tactics by landlords; work-at-home schemes and fraudulent sweepstakes and lotteries; and telemarketers and mail solicitations that misrepresent or fail to deliver their services or that breach do-not-call rules.
- Consumer Debt Rises For Eighth Straight Month
ConsumerAffairs.com 10 Jul 2011
The Federal Reserve reports that consumer credit grew in May for the eighth month in a row, primarily as a result of credit card use. According to the data, credit rose by $5.08 billion after a revised $5.67 billion gain in April. Economists say that many consumers are using their credit cards to purchase necessities such as gas, groceries, and other day-to-day needs. Revolving debt, which includes credit cards, rose by $3.37 in May after shrinking $877 million in April, marking the first gain this year and the biggest jump since June 2008. Non-revolving debt also was higher, climbing $1.71 billion in May after jumping $6.54 billion the previous month. To keep credit card debt under control, the Center for Responsible Lending recommends that consumers always pay more than the minimum amount due on the monthly bill. CRL says that doing so can save a consumer as much as $2 for every extra $1 they pay.