September 23, 2014
The Consumer Financial Protection Bureau has proposed new rules to regulate non-bank auto finance lenders, including the lending divisions of large car manufacturers. The proposed rules are here. CFPB estimates that the new rule would cover 38 auto finance companies, which make 90% of all consumer auto loans in the country. These companies have never been regulated before.
According to the CFPB’s press release, the proposal was inspired by findings of discriminatory pricing in the auto finance market. The CFPB has already recovered $56 million from regulatory action against indirect auto finance lenders, for discriminatory pricing.