On February 25, 2015, a national lender and securitizer of automobile loans disclosed in a SEC Filing that the Department of Justice (“DOJ”) issued a subpoena to the lender in January 2015 regarding its origination and securitization of subprime auto loans. The lender disclosed that the DOJ may initiate civil…
On February 25, 2015, the Department of Justice (“DOJ”) announced a settlement with a national motor vehicle lender over allegations that the company repossessed over 1,1000 cars in violation of the Servicemembers Civil Relief Act, 50 U.S.C. Sections 501-597b. A consent order was filed in the U.S. District Court for…
On February 24, 2015, a national bank disclosed in an SEC filing that the Department of Justice (“DOJ”), Department of the Treasury, U.S. Attorney’s Office for the District of New Jersey, and New York district attorney’s office issued subpoenas to the bank in early 2015 related to the bank’s subprime…
The DOJ announced a settlement of the first “buy here, pay here” discriminatory auto-lending lawsuit. The complaint, filed in January, 2014 by the DOJ, the U.S. Attorney’s Office for the Western District of North Carolina and the North Carolina Attorney General in the U.S. District Court for the Western District…
On September 18, CFPB Director Richard Cordray delivered remarks at a Field Hearing about CFPB’s latest proposed rule, which would allow it to begin regulating “captive” finance companies – those entities owned by automotive manufacturers “for the primary purpose of facilitating sales for their parent companies and associated dealers.” In his…
The Department of Justice is investigating whether to bring civil claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) against GM Financial Company, Inc. for its origination and securitization of subprime auto loans. GM Financial revealed the investigation in a recent SEC 8-K filing, stating that…
The Federal Trade Commission (FTC) recently announced a $5.5 million monetary and injunctive settlement with auto lender Consumer Portfolio Services, Inc. (CPS) concerning allegations that the company used illegal tactics in servicing and collecting consumers’ auto loans, and failed to adopt proper quality controls, in violation of Section 5 of…