The CFPB has warned that the indirect auto lending industry has
been a target of CFPB supervisory and investigative scrutiny. In
March 2013, the CFPB issued a bulletin explaining that it
would hold indirect auto lenders accountable for unlawful
discriminatory pricing. The CFPB highlighted that its enforcement
action against the bank is part of a larger joint effort by the
CFPB and DOJ to address discrimination in the indirect auto lending
market. Industry participants are likely to see additional scrutiny
and enforcement activity from both the CFPB and DOJ.
CFPB Alleges FDCPA, TILA, and Other Consumer Protection
Violations in Indirect Auto Lending
On October 1, the CFPB ordered an indirect auto
lender and its auto title lending subsidiary to pay more than $48
million in restitution and consumer relief over allegations that
both companies engaged in unlawful debt collection practices in
violation if the Fair Debt Collection Practices Act (FDCPA).
