New rules being announced by the Consumer Financial Protection Bureau would mean that the captive finance arms would be subject to oversight from the CFPB.
Automotive News reports that the CFPB will now have jurisdiction over "nonbank lenders" that "make, acquire, or refinance 10,000 or more loans or leases in a year." This rule would encompass virtually all captive finance arms, covering a total of 38 lenders that originate roughly 90 percent of nonbank auto loans and leases.
Until now, the CFPB has not defined its cutoff point for overseeing "larger participants", which largely included financial institutions. But the new definition brings auto maker finance arms under the CFPBs umbrella, something which has been expected for some time.
The post Captives To Face CFPB Oversight appeared first on The Truth About Cars.
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