Consumer Financial Protection Bureau

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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JIM HENRY

BLOG: Is CFPB guilty of spin?

12:01 am U.S. ET | Aug. 27, 2014

Remarks delivered by Consumer Financial Protection Bureau Director Richard Cordray and language used in a bureau statement last week were a lot harsher than the dry legalese of the consent order signed this month by the CFPB and First Investors Financial Services Group....
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CFPB takes new tack in auto lender crackdown

12:01 am U.S. ET | Aug. 25, 2014

The Consumer Financial Protection Bureau took a fresh approach to cracking down on auto lenders, citing one group for failing to furnish accurate customer data to credit reporting agencies....
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JIM HENRY

BLOG: Did dealers hurt themselves with the carve out?

12:01 am U.S. ET | Aug. 20, 2014

There’s no mistaking that federal regulators are serious about policing auto lenders. By extension, auto dealers feel they’ve got a big target on their backs, too....
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JIM HENRY

BLOG: N.Y. Times' demands are misguided

12:01 am U.S. ET | Aug. 13, 2014

Subprime auto loans have gotten most of the attention, but an editorial in The New York Times on Saturday makes other demands dealers and lenders are sure to dislike....
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JAMES B. TREECE

BLOG: GM Financial subpoena shifts investigation away from dealers

12:01 am U.S. ET | Aug. 6, 2014

When dealers saw headlines saying the U.S. Department of Justice had subpoenaed GM Financial ast month to produce documents relating to its subprime auto loan contracts, they could be excused for worrying that this represented another threat to their arranging car loans for consumers....
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JIM HENRY

BLOG: Calif. ballot proposal misses cut for November vote

12:01 am U.S. ET | July 30, 2014

A California consumer advocacy group’s ballot initiative that would have outlawed dealer reserve in the state won’t make it on the November ballot this year....
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JIM HENRY

BLOG: N.Y. Times story on subprime offers feds ammunition

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

A withering account of subprime auto lending in Sunday's New York Times reinforces bad stereotypes about used-car dealers, smears subprime lenders and their investors, takes out of context an increase in delinquencies and loan losses from record lows, and provides ammunition to auto finance industry critics in Washington....
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JIM HENRY

BLOG: Credit union ads highlight misperceptions of dealer reserve

12:01 am U.S. ET | July 16, 2014

A Florida credit union's ad campaign beating up dealers and auto lenders for “rate markups” is hard to look at, but dealers and lenders should check it out to see what they're up against in terms of public perception and in case the approach catches on in other states....
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JIM HENRY

BLOG: U.S. House action on CFPB is symbolic

12:01 am U.S. ET | June 11, 2014

The auto finance industry, auto dealers, and their mostly Republican allies in Congress continue to make it clear they don’t like the Consumer Financial Protection Bureau or how it was set up in 2010....
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JIM HENRY

BLOG: Lender consent order grants insight into FTC

12:01 am U.S. ET | June 4, 2014

Dealers and their legal counsels should check out last week's consent order between subprime auto lender Consumer Portfolio Services and the Federal Trade Commission, even though the case isn't about dealerships....
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JIM HENRY

BLOG: NADA's take on 'The Fallacy of Flats'

12:01 am U.S. ET | May 28, 2014

The National Automobile Dealers Association has tried for months to impress upon the Consumer Financial Protection Bureau that switching from dealer reserve to flat fees will not eliminate dealerships' ability to set their compensation for auto loans....
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