Traditionally, non-bank lenders looked to the states and the FTC for industry regulations. But, this has changed with the introduction of the CFPB. Recent reports show that the federal government is stepping up efforts to regulate and review auto finance companies, many of whom have never been subject to bank-style examinations.
The CFPB has created a new layer of regulation, according to John Redding, Counsel in the Southern California office of BuckleySandler. Auto lenders have to be alert and aware of their fair and responsible lending risks.
Redding says one of the ways to minimize these risks is to be proactive when reviewing a companys policies, procedures, discretionary...