Alert November 12, 2013

CFPB to Hold Auto Finance Forum

The CFPB will hold a forum on auto finance in Washington, D.C. on November 14, 2013. According to the CFPB, the forum will include a discussion with consumer groups, industry representative and members of the public. The forum comes on the heels of several actions taken by the CFPB related to auto finance. The CFPB has taken enforcement action against a supervised entity for its indirect auto lending program. The CFPB also released guidance on indirect auto lending and complying with the Equal Credit Opportunity Act (see April 2, 2013 Alert). More recently, the CFPB responded to a letter from members of Congress requesting that the CFPB provide details on the methodology used to determine whether disparate impact is present in an auto creditor’s portfolio, its decision to issue guidance rather than using the rulemaking process, and the CFPB’s coordination with other federal regulators including the FRB and FTC in issuing guidance on fair lending and indirect auto lending. In its response, the CFPB noted that it has many tools at its disposal “when dealing with practices that cause consumer harm.”