Bureau Provides Help With Fair Lending Practices to Indirect Auto Lenders
The Bulletin has no force or effect on May 21, 2018, the President signed a joint resolution passed by Congress disapproving the Bulletin titled “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act” (Bulletin), which had provided guidance about the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Consistent with the joint resolution. The ECOA and Regulation B are unchanged and stay static in effect and force. See more details on complying using the ECOA and Regulation B. The materials concerning the Bulletin from the Bureau’s website are for reference just.
WASHINGTON, D.C. – Today, the customer Financial Protection Bureau (CFPB) released a bulletin describing that particular lenders that provide automobile financing through dealerships have the effect of illegal, discriminatory prices. Possibly discriminatory markups in auto financing may end in tens of vast amounts in customer damage each year, as well as the bulletin provides guidance to indirect automobile lenders in the CFPB’s jurisdiction on how best to address reasonable financing danger.
“Consumers should not need certainly to pay more for an auto loan merely centered on their race, ” stated CFPB Director Richard Cordray. “Today’s bulletin clarifies our authority to follow car loan providers whose policies harm consumers through illegal discrimination. ”
Whenever consumers finance car purchases from an automobile dealership, the dealer often facilitates indirect financing by way of a third party loan provider. The dealer plays a role that is valuable originating the mortgage and finding financing sources. Continue reading CFPB to Hold Auto Lenders Responsible For Prohibited Discriminatory Markup