Bureau Provides Guidance on Fair Lending Methods to Indirect Auto Lenders
The Bulletin has no force or effect on May 21, 2018, the President signed a joint resolution passed by Congress disapproving the Bulletin titled “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act” (Bulletin), which had provided guidance about the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Consistent with the joint resolution. The ECOA and Regulation B are unchanged and stay in effect and force. See more details on complying utilizing the ECOA and Regulation B. The materials concerning the Bulletin from the Bureau’s site are for guide only.
WASHINGTON, D.C. – Today, the customer Financial Protection Bureau (CFPB) circulated a bulletin explaining that particular loan providers offering automobile financing through dealerships have the effect of illegal, discriminatory prices. Possibly discriminatory markups in auto lending may lead to tens of vast amounts in consumer damage each year, as well as the bulletin provides guidance to indirect auto lenders in the CFPB’s jurisdiction on the best way to deal with lending risk that is fair.
“Consumers must not need to pay more for car finance just according to their race, ” stated CFPB Director Richard Cordray. “Today’s bulletin clarifies our authority to follow automobile loan providers whose policies harm customers through unlawful discrimination. ”
When consumers finance vehicle purchases from an automobile dealership, the dealer often facilitates indirect funding by way of a alternative party lender.Saiba Mais