Consumer Financial Protection Bureau

CFPB urges Fifth Third to lower its allowable dealer reserve, report says

2:50 pm U.S. ET | Aug. 7, 2015

The Consumer Financial Protection Bureau is urging Fifth Third Bancorp to reduce the amount of dealer reserve the bank allows on its auto loans, as part of talks to settle an investigation by the agency into possible discriminatory lending practices by Fifth Third, The Wall Street Journal reported....
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HANNAH LUTZ

BLOG: Bill limiting CFPB has long road to becoming law

12:30 pm U.S. ET | Aug. 5, 2015

The U.S. House Financial Services Committee last week moved a bill that would limit the Consumer Financial Protection Bureau's guidance over auto lending. But dealers and lenders should hold off on the celebrations....
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HANNAH LUTZ

BLOG: How Honda Finance’s settlement could be a win for all retailers

11:30 am U.S. ET | July 22, 2015

At face value, the consent order between Honda Finance and the CFPB over lending practices doesn’t seem like a gift to retailers industrywide, but it could be....
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JASON STEIN

Birthday wish for CFPB: Get real

12:01 am U.S. ET | July 20, 2015

Five years after it was created, the Consumer Financial Protection Bureau should seek additional information and better methodology to ensure it is really protecting consumers from discrimination....
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VIDEO: CFPB responds to dealers on discrimination

3:25 pm U.S. ET | July 17, 2015

Regulator spars with dealer at NAMAD conference over policy....
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HANNAH LUTZ

BLOG: In dealer-reserve debate, CFPB, NADA and American Honda Finance strive to move ball

11:30 am U.S. ET | July 15, 2015

The debate over dealer-arranged auto loans has taken on new dimensions in recent weeks with various stakeholders seeking the upper hand....
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JIM HENRY

BLOG: CFPB plays up auto finance complaints

11:00 am U.S. ET | May 6, 2015

A report released by the Consumer Financial Protection Bureau covering nearly 30,000 military service member complaints over a three-year period shows that although gripes about auto loans were a small part of the mix, they were a large part of the CFPB's enforcement actions....
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JIM HENRY

BLOG: Auto finance critic Warren stands firm on CFPB dealership oversight

11:15 am U.S. ET | April 22, 2015

Sen. Elizabeth Warren is once again calling for direct regulation of auto dealerships by the Consumer Financial Protection Bureau....
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JIM HENRY

BLOG: Lenders' outcry against CFPB 'narratives' is justified

12:01 am U.S. ET | April 8, 2015

It's no wonder auto lenders cried foul last month when the CFPB announced its plan to begin posting consumers' first-person tales of their grievances with auto loans later this year....
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JIM HENRY

BLOG: Congressmen get testy with CFPB chief Cordray

11:45 am U.S. ET | March 11, 2015

The Consumer Financial Protection Bureau and its critics on the House Financial Services Committee traded jabs in a tense session last week as CFPB Director Richard Cordray presented the bureau's semiannual report....
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JIM HENRY

BLOG: Lending practices face new scrutiny: States

11:30 am U.S. ET | Jan. 14, 2015

State officials aren't far behind the federal government in the present crackdown on auto lenders, especially in the subprime segment....
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JIM HENRY

BLOG: 'Flat-rate model,' yes. Flat fees, maybe not.

11:00 am U.S. ET | Jan. 7, 2015

One veteran F&I vendor predicts that in 2015 more lenders will probably adopt a “flat-rate model” to pay dealerships for arranging auto loans....
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JIM HENRY

BLOG: Consent orders and the law of unintended consequences

11:14 am U.S. ET | Dec. 23, 2014

The Consumer Financial Protection Bureau quietly terminated a consent order with Minneapolis-based U.S. Bank last month, a contrast to the fuss it made in announcing the agreement in June 2013....
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JIM HENRY

BLOG: Will the CFPB redefine “larger”?

12:01 am U.S. ET | Dec. 17, 2014

Auto industry watchers that formally weighed in on the Consumer Financial Protection Bureau’s definition of “larger” auto lenders took predictable positions before the public comment period closed last week....
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JIM HENRY

BLOG: Who distorted what? Wording of CFPB statement will get its own investigation

11:30 am U.S. ET | Dec. 10, 2014

The ombudsman’s office for the Consumer Financial Protection Bureau said it would conduct an independent review into complaints that the CFPB’s press releases don’t match the consent orders they describe -- something auto finance insiders have complained about bitterly but privately, for fear of provoking the bureau.
...
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Honda captive may face loan-bias penalty

12:01 am U.S. ET | Dec. 8, 2014

American Honda Finance Corp. disclosed that the Consumer Financial Protection Bureau and U.S. Department of Justice have concluded the company was responsible for illegal discrimination in pricing auto loans and could be disciplined unless it reaches a settlement with the federal agencies....
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EDITORIAL

Discrimination? Share the data

12:01 am U.S. ET | Dec. 1, 2014

Did federal regulators use reliable data analysis to conclude that dealers may be discriminating in their lending practices? A new study commissioned by the American Financial Services Association, a lender group, challenges the statistical method used by the Consumer Financial Protection Bureau....
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JIM HENRY

BLOG: Military ends paycheck deductions for car loans

12:01 am U.S. ET | Nov. 26, 2014

The Department of Defense last week made it impossible for service members to use the reliable but old-fashioned military allotment system to make auto loan payments -- a small-scale example of a couple of bad apples in auto lending ruining things for everyone else....
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Study slams CFPB's proxy methodology

12:01 am U.S. ET | Nov. 23, 2014

The statistical method the Consumer Financial Protection Bureau uses to identify which consumers belong to minority groups correctly identified African-American borrowers only 24 percent of the time. That was one of the findings of a nearly yearlong study commissioned by the American Financial Services Association, a lender group with offices in Washington....
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JIM HENRY

BLOG: Free advice for consumers can be worth the price

12:01 am U.S. ET | Nov. 19, 2014

There’s a bright spot for dealerships that do a lot of business with automakers’ captive finance companies and preferred lenders, data on the website Wallet Hub show: Car manufacturers (that is, captives) charge the lowest auto loan rates for new cars, at 40 percent below average....
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JIM HENRY

BLOG: Auto finance industry still paying for past sins

12:01 am U.S. ET | Sept. 24, 2014

Consumer Financial Protection Bureau regulators seem to have a caricature of a plaid, polyester sport coat-wearing car salesman in mind when they talk about auto retailing....
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JIM HENRY

BLOG: Regulation forecast calls for rain, former CFPB exec says

11:00 am U.S. ET | Sept. 10, 2014

Rick Hackett, a former assistant director for the Consumer Financial Protection Bureau who was the bureau's liaison to the auto finance industry, predicted the bureau would probably unveil a long-awaited rule next week, defining which nonbanks fall under the CFPB's jurisdiction....
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