Consumer Financial Protection Bureau creates Larger Participant Rule

WASHINGTON, D.C. –
What the Consumer Financial Protection Bureau officially will consider to be a “larger participant” in the auto finance market took another significant step forward today.

The CFPB published a rule that will allow the agency to supervise larger nonbank auto finance companies for the first time. The CFPB also released the examination procedures that regulators will use to ensure that auto finance companies are following the law.

“Auto loans and leases are among the most significant and complex financial transactions in a typical consumer’s life,” CFPB director Richard Cordray said. “Today’s rule will help ensure that larger auto finance companies treat consumers fairly.”

The CFPB estimated auto loans are the third largest category of household debt, behind mortgages and student loans. The bureau added American consumers had about $900 billion in auto loans outstanding in the fourth quarter of 2014.

Currently, the bureau supervises auto financing at the largest banks and credit unions. Today’s rule extends that supervision to any nonbank auto finance company that makes, acquires or refinances 10,000 or more loans or leases in a year.

Read more @ http://autoremarketing.com

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Latest Used Car News

1. U.S. Bank Monitoring F&I Product Pricing

U.S. Bank told dealers this week that it’s monitoring how they price F&I products. If its monitoring program finds ‘unexplained differences in pricing or excessive add-on product financing on a prohibited basis,’ dealers will be asked to provide an explanation.

2. Disparate Impact Ruling Expected This Week

A case debating a legal theory used by the Consumer Financial Protection Bureau to go after auto finance sources for perceived discrimination in dealer markup is expected to be ruled on this week by the U.S Supreme Court.

3. TrueCar Denies Claims in CNCDA Lawsuit

The California New Car Dealers Association filed a lawsuit against TrueCar last Wednesday, alleging the that the shopping site is not in compliance with certain sections of the California Vehicle Code – a claim TrueCar has denied.

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NYC Investigates Santanders Used Financing

New York City’s Department of Consumer Affairs announced an investigation into used-car lending, issuing subpoenas to Santander Consumer USA Inc. and Santander Consumer Funding 3 LLC, auto finance companies owned by Banco Santander S.A.
As the licenser and regulator of the city’s used-car dealerships, DCA is for the first time ever investigating used car dealer financing practices, in particular subprime loans underwritten by lenders such as Santander and arranged for consumers by the used car dealerships. This inquiry builds on DCA’s earlier investigations, which raised concerns that dealerships may be engaged in illegal predatory practices such as selling expensive and unwanted add-ons and arranging high-interest subprime loans without informing consumers of information they are required to provide so that the consumer can make a smart choice about financing.

Used Car Prices Take Big Drop

The average price of a used vehicle for model years 2009-13 saw the largest monthly depreciation of the year so far at 2 percent during October, according to Black Book.

Domestic cars declined the most at 3.2 percent; import cars fell 2.3 percent; domestic trucks fell 2.1 percent; and import trucks fell 1.3 percent

Car Prices

Most Car Shoppers Use Social Media

Digital Air Strike has released the results of its 2014 Automotive Social Media Trends Study.

With consumers’ ever-expanding dependence on social media, this study details the specific usage trends of social media and online review sites when people select a dealership for a new-car purchase. The study included an online survey of 2,000 consumers who had purchased a vehicle in the last six months.

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Women Are Less Confident in Car Buying Process

Women Less Confident in Car-Buying Process KBB Reports
A new study from Kelley Blue Book found that 58% of men are confident in the car-buying arena, versus 38% of women. As a result, women take longer to make a purchase decision.
http://auto-bulk.com

Wholesale Used Car Prices Continue Decline

Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) declined 1 percent in July.

That resulted in a Manheim Used Vehicle Value Index reading of 122.7 for the month. That is still an increase of 1.5 percent from a year ago. This was the third consecutive monthly decline in wholesale pricing.

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Study Shows Collection Agencies Recovering More Debt at Lower Pay with Fewer Collectors

Study Shows Collection Agencies Recovering More Debt at Lower Pay with Fewer Collectors
Financial Soltuions
The third-party debt collection industry returned some $45 billion to creditors and other clients in 2013, according to a study released today by ACA International. The report, based on a survey and other statistical analysis by Ernst & Young, is the latest in a series of comprehensive industry studies.

AutoTrader com has a new president

AutoTrader.com has a new president: Jared Rowe, who spent the past two-and-a-half years in the same role at Kelley Blue Book.
Financial Soltuions

AutoTrader — which enhanced its presence in the industry this year with the Buy-Here Pay-Here Center — announced Monday afternoon that Rowe is replacing Alan Smith, who is leaving the company to pursue personal interests.

AutoTrader com has a new president

AutoTrader.com has a new president: Jared Rowe, who spent the past two-and-a-half years in the same role at Kelley Blue Book.
Financial Soltuions

AutoTrader — which enhanced its presence in the industry this year with the Buy-Here Pay-Here Center — announced Monday afternoon that Rowe is replacing Alan Smith, who is leaving the company to pursue personal interests.