Search Results: Auto Finance

CFPB and Auto Lender Settle Servicemember Debt Collection Claim for $3.28 Million

​On October 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it entered an administrative consent order against an Ohio-based auto lender that specializes in loans to military servicemembers.  The CFPB consent order, and the companion stipulated order issued by the U.S. District Court for the Southern District of Ohio, resolve…

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Vermont AG Announces Settlement With Automobile Title Loan Company Over Alleged Illegal Interest Rates

​On September 23, 2015, the Vermont Attorney General’s Office announced a settlement with a regional automobile title loan company over allegations the company charged illegal interest rates and fees to borrowers. The company operated websites that offered automobile title loans to Vermont consumers. Consumers who were approved for the loans assigned…

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Oregon Attorney General Announces Lawsuit Against Car Title Loan Company Over Illegal Loans

On August 18, 2015, the Oregon Attorney General’s Office and the Oregon Department of Consumer and Business Services announced​ that they filed a lawsuit against a regional automobile loan company. The company advertised car title loans online. When consumers completed the online applications, the company allegedly deceived them into signing…

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CFPB Asks DOJ to Investigate Automotive Lending Company for ECOA Violations

​On August 10, 2015, the American subsidiary of an automotive lending company disclosed in an SEC filing that the Consumer Financial Protection Bureau (CFPB) had notified the company on July 31, 2015 that it had asked the DOJ to investigate the company’s potential violations of the Equal Credit Opportunity Act.  According ​to the filing, the CFPB’s referral…

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Auto Finance Company Settles Action Brought by CFPB and DOJ

On July 15, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) announced that claims concerning an indirect auto finance company’s alleged discriminatory lending practices were settled as part of a consent order requiring $24 million in restitution payments to borrowers and changes to the lender’s dealer compensation system.  The consent order alleges…

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Add-On Products Continue To Present Litigation Risks For Lenders

The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…

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West Virginia Attorney General Settles with Automobile Title Loan Company Over Debt Collection Practices

On June 23, 2015, the West Virginia Attorney General announced a settlement with an automobile title loan and debt collection company over claims the company engaged in abusive debt collection practices. According to the West Virginia Attorney General, the company repeatedly called consumers at inconvenient times regarding their delinquent loan payments and…

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Auto Finance Company Sued By CFPB Over Military Debt Collection Activities

On June 17, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a ​complaint against a national automobile finance company over allegations that the finance company used illegal threats and deceptive tactics to collect debts from military servicemembers.  The complaint alleges that the finance company violated the Consumer Financial Protection Act…

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CFPB Announces Rule Permitting Monitoring of Auto Finance Companies

On Wednesday, June 10, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a new rule that grants the CFPB the ability to monitor nonbank companies that qualify as “larger participants of a market for automobile financing.”  The CFPB simultaneously adopted a separate rule defining certain automobile leases as a “financial…

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FTC Releases 2014 Annual Financial Acts Enforcement Report

FTC

On June 9, 2015, the Federal Trade Commission (“FTC”) announced that it provided its 2014 Annual Financial Acts Enforcement Report (the “Report”) to the Consumer Financial Protection Bureau (“CFPB”) and the Federal Reserve Board.  The 23-page Report, dated May 29, 2015, provided information about enforcement and related activities involving Regulation Z (Truth in…

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