CFPB could crack down on auto lenders in 2022
The Consumer Financial Protection Bureau (CFPB) is increasingly concerned about the rising cost of vehicles. But, since they have no oversight over dealerships, they could turn to the auto loan industry in 2022.
The CFPB scrutinizes the car loan market. According to Celia Winslow, senior vice president of the American Financial Services Association, “the CFPB wants to drive vehicle prices down, but it has no control over dealerships, so it’s focused on auto loans,” said Celia Winslow. she said at a recent conference.
She also said Automatic quarters that could mean the CFPB scrutinizes auto lenders more carefully when it comes to fees, interest rates, repossessions and loan-to-value ratios. How could a crackdown on auto lenders affect you?
The CFPB is rampant. The CFPB notes in a recent blog post that it is focused on ensuring affordable credit for auto loans, fair practices in servicing auto loans, and promoting competition among subprime lenders.
They have already cracked down on unfair repossession processes. In February, new CFPB director Rohit Chopra said: “With today’s high car prices, auto lenders and investors may be tempted to seize vehicles for resale in the hot car market. second hand. No American wants to wake up to find their car stolen. Auto loan officers must ensure that every repossession is legal.
While it’s impossible to say what a crackdown on auto lenders might look like, you can bet the outcome will be consumer-friendly, since that’s been the CFPB’s main focus since its inception in 2011. Chopra, who has was named director in October 2021, seems to be presenting itself as an aggressive crusader for the consumer population in America.
What the CFPB can do for you. According to their website, the CFPB is a government agency that “implements and enforces federal consumer finance law and ensures that markets for consumer financial products are fair, transparent and competitive.” That means they’re watching out for you and all consumers when it comes to federally regulated financial services like lending.
And, since they help enforce the laws, they can help crack down on things like unfair lending practices, something they’re looking at right now. When the CFPB takes action, companies and industries that have engaged in unfair practices are usually forced to pay through fines and other actions taken by the bureau. They have returned billions of dollars to consumers in the United States through their actions.