Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32For more information, please visit or 15 key Trends About one-half of the auto lending enforcement actions involved deceptive advertising or inadequate disclosures. The FTC was particularly active in enforcing the FTCA, TILA, and state consumer protection laws against lend- ers that allegedly were engaged in deceptive advertising and providing inadequate disclosures to consumers. The CFPB and DOJ continued to focus on lenders and auto dealers that permitted or encouraged discretionary auto dealer markups on interest rates offered to borrow- ers. The agencies alleged that such practices violated ECOA, and that lenders could be liable for permitting dealer markups where third parties utilized those mark- ups to a discriminatory end. The DOJ is continuing to investigate the auto loan origination and securitization practices of major finan- cial institutions for potential violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). In February, Capital One Financial Corporation and Consumer Portfolio Services, Inc. each disclosed that it had received subpoenas related to these investigations. GM Financial Company, Inc. had revealed in August 2014 that it had received a similar subpoena. State attorneys general were particularly active in initiat- ing actions against auto lenders. About a quarter of auto lending enforcement actions were brought by state attor- neys general under state consumer protection or usury laws. These actions, in states such as Massachusetts, Oregon, Vermont, Tennessee and West Virginia, involved claims that auto lenders were charging excessive interest rates, using deceptive advertising, or engaging in unfair or deceptive debt collection practices. some 2015 Highlights CFPB Announces Rule to Regulate Non-Bank Auto Lend- ers. On June 10, 2015, the CFPB announced that it would start regulating certain large non-bank auto finance companies (defined as companies with 10,000 transactions per year) that originate auto loans, re- finance existing auto loans, provide certain types of auto- mobile leases, or purchase any of these types of obliga- tions. Before issuance of this rule, the CFPB supervised auto financing only at major banks and credit unions. This expansion of regulatory oversight means that the CFPB may enforce federal consumer protection laws against these non-bank auto finance companies. National Bank Settles ECOA Claim for $18 Million. On September 28, 2015, Fifth Third Bank settled allegations by the DOJ and CFPB that it violated ECOA by allowing its auto dealer partners to charge minority borrowers higher interest rates through discretionary “dealer mark- 2015 AUTO LENDING ENFORCEMENT ACTIONS MORTGAGE SERVICING 0 5 10 15 20 State Law CFPA Other FCA RESPA ECOA FTCA FHA TILA FIRREA FCRA FDCPA 2015 AMOUNTS SECURED BY AGENCY IN DEBT COLLECTION & DEBT SERVICING ENFORCEMENT ACTIONS California Attorney General $100,000,000 OCC $60,000,000 2015 Enforcement Actions by Statute 0 1 2 3 4 5 6 7 8 DOJ State AGs FTC CFPB