Friday, June 12, 2015
The CFPB has issued its final ruling: Under the final rule, the CFPB will have supervisory authority over nonbank auto finance companies with at least 10,000 aggregate annual originations. These originations include making, purchasing, acquiring, or refinancing extensions of credit for the purchase or lease of an automobile. The CFPB estimates this threshold will bring about 34 entities and their affiliates under its supervisory authority, which represents roughly seven percent of all nonbank auto finance companies, and approximately 91% of the nonbank automobile financing market. In addition to the final rule, the CFPB also published updated automobile finance examination procedures to include industry specific guidance for covered persons.
The CFPB said it will be watching lenders and dealers to be sure they are:
- Fairly marketing and disclosing auto financing terms: The Bureau will be examining auto finance companies that market directly to consumers to ensure they are not using deceptive tactics to market loans or leases.
- Providing accurate information to credit bureaus: The CFPB recently took an enforcement action against an auto finance company that distorted consumer credit records by inaccurately reporting information like the consumers’ payment history and delinquency status to credit bureaus.
- Treating consumers fairly when collecting debts: The Bureau will be looking to ensure that collectors are relying on accurate information and using legal processes when they collect on debts. The Bureau also will review the repossession process, including the practices of third-party service providers that are employed to repossess autos.
- Lending fairly: The Bureau will assess whether auto finance companies’ practices comply with the Equal Credit Opportunity Act and other Bureau authorities protecting consumers.
GSF Remarketing welcomes CFPB oversight and embraces the Dodd-Frank law. Why? In 2011 GSF Remarketing took a proactive approach to our services and clients: adopting open book policies, becoming CFPB & Dodd/Frank complaint, charging flat service fees and working with all parties through the remarketing process.
GSF Remarketing America’s only Minority-owned automotive remarketing firm. Gsfremarketing.com 612-600-8234 firstname.lastname@example.org