Scrutiny Over Disparity in Loan Fees at Auto Dealerships

November 22, 2013
New York Times  
auto financing news

Auto dealerships often arrange loans for car buyers through third-party lenders, deciding how much they want to charge for that service and tack their fee onto the lender's interest rate. The National Automobile Dealers Association says franchise dealers typically do not charge more than 1 percent interest on average, but some consumer groups say that average fees range from 2 percent to 2.5 percent, depending on the terms.

The issue of whether those fees violate fair-lending rules has now been taken up by Steven Rosenbaum, the Justice Department's chief of the housing and civil enforcement section, who disclosed last week that the department was in the middle of a number of joint investigations with the Consumer Financial Protection Bureau about auto loans.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.