b'CREDIT CARDS AUTO LOANSCONSUMER FINANCIAL &TELEPHONE CONSUMER PROTECTION BUREAU PROTECTION ACTMORTGAGESTUDENT LENDINGDEBT COLLECTION practices. The DOJ alleged that the results of theEngland AutoMax Inc., AutoMax Preowned Inc., and testing program revealed a pattern or practice ofAuto Max Inc. and their owner will pay $750,000 to discrimination where the dealership offered lessharmed consumers, and up to $175,000 in suspended favorable auto loan terms to minorities. Enforcementpenalties. All in all, Massachusetts brought in a Watch will continue to monitor this case (and others) towhopping $6 million in consumer relief, penalties, and see if the ECOA will fuel further federal enforcementenforcement costs. DATA SECURITYPayday/Small Dollar LendingFEDERAL COURTS OF PAYDAY LENDING actions. APPEALSMassachusetts Recovers $6 Million from Exeter &LOOKING AHEAD TO 2020 In 2019, Goodwin monitored 13 federal and state enforcement actions related to payday lending, AutoMax. Auto lending has been a particular point ofAs a result of the CFPBs indirect auto lending guidancecontinuing a steady-to-downward trend from past years, following 13 actions in 2018 and 26 actions emphasis for the Massachusetts AG and other statebeing rescinded under the Congressional Rule Actin 2017. Goodwin also continued to monitor developments to the proposed changes to the CFPBs enforcement agencies. In April and November, theback in 2018, we expect that the CFPB will remainpayday lending rule, originally promulgated in November 2017 but still yet-to-be implemented. 2019 Massachusetts AG announced two settlements with anlargely inactive in the auto lending market at leastsaw federal and state regulators initiate suits and reach settlements that focused on various conduct, auto loan finance company and a used car dealershipuntil there is a change in leadership. However, state regarding allegations that the companies violated statesuch as allegedly illegal or usurious interest rates, predatory lending practices, misleading or deceptive consumer protection laws. In April, the Massachusettsattorneys general will likely stay the course, if not pickmarketing practices, and tribal affiliations. AG settled its claims with an auto lender that facilitatedup speed with the number of enforcement actions as the origination of subprime auto loans that consumerswe exit into 2020. Massachusetts indicated that autoKEY TRENDSAlthough the Bureaus proposed rule changes signal could not be reasonably expected to repay. Underrepossession will be at the top of its future agenda,relaxed enforcement in the near term, Congress may the terms of the settlement, Exeter Finance LLCand with two actions under its belt this year, theIn early 2019, the CFPB announced plans to delay theyet fill the regulatory void. Bipartisan support continues will pay $4.675 million in relief to Massachusettsproclamation from Californias Finance Department thatcompliance deadline for a portion of the proposedto grow for expanding existing protections currently consumers, and $825,000 in civil penalties to theit too would focus on auto financing, auto title lending,Payday Lending Rule. The Rule, originally promulgatedembodied in the Military Lending Act (MLA) to all commonwealth of Massachusetts. Then in November,service contracts, GAP waiver fees, and repossessionin 2017 under then-Director Cordray, consisted ofAmericans, a move that could sharply curtail payday the Massachusetts AG settled its investigation into apractices appears to be holding true. We also wouldtwo key components, one governing underwritingindustry performance. The MLA, intended to protect used car dealerships misrepresentation of materialnot be surprised to see the FTC pick up the slackrequirements and a second governing payment andmilitary readiness of active duty servicemembers, caps information about the used cars sold, its sale of add- for federal agencies now that the CFPB has taken acollections practices. The Bureaus proposal wouldannual interest at 36% in addition to other consumer on service contracts that did not cover purchasedbackseat in auto lending enforcement, as its officialsdelay compliance of the underwriting portion of the ruleprotections. Industry and interest groups continue to vehicles, falsified down payments, and undisclosedhave also publicly indicated that auto lending would bewhile it considers further revision. The Bureaus newlobby against legislation supporting any version of a fees. Under the terms of the consent judgment, Newan area of focus in its current enforcement agenda. position represents a sharp reversal from the originalnationwide interest rate cap.rule and was among the first announcements made by Director Kraninger, in early 2019. WHAT TO WATCH 8. Payday Lending by YearContinued state enforcement, with a focus on lending and repossession activities PAYDAY ACTIONS BY YEAR (WITH RECOVERIES)FTC entry into the auto lending enforcement space2016 2017 2018 2019 $1,476.4M$96.2M$84.2M$17.8M31 26 131330 31'