Thursday, February 20, 2014

Auto Loan Growth Continues, Chamber Of Commerce Calls For Lending Rules

New Suckers At The Stock Photo Dealership

Just as total auto loan balances in Q4 2013 climb to $798.5 billion, the United States Chamber of Commerce has called upon the Consumer Financial Protection Bureau to draw up a detailed compliance guide for auto lenders returning to the fray.

Automotive News reports Experian Automotive saw $798.5 billion in total auto loan balances for Q4 2013, the highest recorded by the credit reporting bureau since the first numbers were published in 2007. Thirty-day delinquencies in the same period fell to 2.6 percent from their previous peak of 2.7 percent in 2012, though subprime loans — the source of most delinquencies — accounted for 36.2 percent of all outstanding loans, up from Q4 2012′s 35.7 percent.

Meanwhile, the U.S. Chamber of Commerce has tasked the CFPB with building a detailed compliance rulebook meant to standardize lending procedures and liabilities for collection actions undertaken by service providers. The request comes on the heels of a December 2013 consent order between the CFPB, Ally Financial and the U.S. Department of Justice, where the lender paid $98 million in restitution and penalties in a settlement regarding the use of the dealer reserve to issue higher interest rates on minority borrowers.



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