Subprime Auto Loan Crisis Chronometer Update JUL 02, 2018 | BY JOSEPH CIOFFI “They are who we thought they were!” Observing the rising tide of borrower delinquencies in subprime auto lending, I’m reminded of that famous outburst by the former NFL coach, Dennis Green. No one should be that surprised when subprime borrowers default. The question has always…

Borrowers in the U.S. are defaulting on subprime auto loans at a higher rate than during the financial crisis, according to Fitch Ratings. Lenders are responding by pulling back on financing to applicants with shaky credit histories and requiring higher standards for loans that they bundle and sell on to investors. The delinquency rate for…

Numerous Democrats and media outlets have accused Republicans of making it easier for car dealers to discriminate against racial minorities by pushing a resolution through Congress to disapprove a guidance document issued in 2013 by the Consumer Financial Protection Bureau. But the CFPB under the Obama administration picked a fight with Congress on this issue, and…

By Kevin Wack U.S. auto lenders may be tempted to breathe easy as Congress prepares to strike down a missive from the Consumer Financial Protection Bureau that they had viewed as regulatory overreach. But lenders would be well advised to keep up their guard, since states — particularly blue ones — are taking steps of their own to…

WASHINGTON — Acting Consumer Financial Protection Bureau Director Mick Mulvaney vowed to bankers on Tuesday that he would halt the agency’s actions against indirect auto dealers, stop posting consumer complaints online and change the bureau’s name. Mulvaney, speaking to more than 1,300 bankers at an American Bankers Association conference, addressed two major areas that the…

The subprime car-lending industry — charging exorbitant rates for car-loans to people least suited to afford them, enforced through orwellian technologies, obscuring the risk by spinning the debt into high-risk/high-yield bonds — is collapsing. The three most prominent lenders in the subprime auto sector shut down spectacularly and suddenly through bankruptcies and fraud investigations (and the bankrupt…

By Jeremy C. Sairsingh on April 6, 2018 POSTED IN AUTO FINANCE, MILITARY ISSUES On March 28, the Department of Justice (DOJ) brought another lawsuit against an auto finance company alleging the company violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by servicemembers without obtaining necessary court orders.  The case, brought against California Auto Finance, was preceded by an…

CHARLESTON —West Virginia Attorney General Patrick Morrisey’s office recently sent letters to more than 300 consumers explaining how they will benefit from approximately $1.49 million in debt cancellation secured as part of a settlement with First Sentinel Bank of Richlands, Va. The settlement resolves allegations that First Sentinel Bank violated state and federal laws, which…

“Hook ‘em and Book ‘em!” By Alec Trueblood, Trueblood Law Firm, Consumer Attorneys serving Texas, Washington, and California The repossession industry has changed models. Traditionally, lenders and banks would hire their local repossession agents directly. Today, many national lenders use national “repossession forwarders,” and no longer even have any contact with the local repossession agency.…

From the Connecticut Law Tribune: The state Department of Banking of Connecticut and Santander Consumer USA have announced a $2.9 million settlement that will credit, waive or refund the accounts of 3,730 Connecticut consumers whose vehicles were repossessed. Santander does not acknowledge wrongdoing, but in the consent order signed by both parties Tuesday, the Illinois-based financial services company agreed to pay a $100,000 fine.…