This week the Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) signed a consent agreement with American Honda Finance Corporation in response to discretionary auto loan pricing and compensation practices. CFPB Director Richard Cordray commended Honda for being proactive in addressing these practices, but had Honda been monitoring more closely, they wouldn’t have […]
Category Archives: Auto Lending
Ally Financial Fair Lending Consent Order
By now most compliance officers have heard about the consent order between Ally Bank, the CFPB and DOJ. In short, Ally agreed to pay a total of $98 million in fines ($18 million) and restitution ($80 million) in a disparate impact settlement of an indirect auto lending case. While several law firms and others have […]
Auto Lending: A New Fair Lending Hot Topic
In the current edition of the ABA Banking Journal Rich Riese, the Senior Vice President at the ABA Center for Regulatory Compliance, gave his view of the outlook for fair lending in 2013. He said “bankers can expect to see the aggressive pursuit of fair lending to continue – and grow in scope.” According to […]