CFPB sharpens knives for subprime auto hunt

By Ryan Bolger
18 Sep 2014

The Consumer Financial Protection Bureau (CFPB) proposed federal oversight of non-bank auto finance companies on Wednesday. The rule, expected to be finalised with only minor tweaks, opens the floodgates for enforcement actions and private litigation against auto lenders and ABS issuers.

Non-bank auto lenders will be subject to regular CFPB compliance audits if the rule is finalised as proposed, meaning the regulator is poised to uncover potential illegalities during reviews of loan documents, financials and internal communications. The CFPB is expected to use its authorities under the rule ...

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