Today, the Consumer Financial Protection Bureau (CFPB or Bureau) released a report on the state of negative equity in auto lending. The CFPB says it found that financing negative equity creates increased risks for consumers, and states that the CFPB will be putting negative equity under scrutiny.
On May 28, the Federal Trade Commission (FTC) released its annual report to the Consumer Financial Protection Bureau (CFPB) detailing enforcement and educational activities undertaken in 2023. The report pertains to actions under the Truth in Lending Act (TILA) and Regulation Z, the Consumer Leasing Act (CLA) and Regulation M, and the Electronic Fund Transfer Act (EFTA) and Regulation E. Specifically, the report highlights FTC initiatives in areas such as automobile financing and leasing, electronic fund transfers, so-called junk fees, payday lending, and negative options.
A U.S. District Court for the District of Maryland recently denied summary judgment in a case under the Telephone Consumer Protection Act (TCPA), finding that the defendant failed to show it received prior express written consent for telemarketing calls.
Join Troutman Pepper Partner Brooke Conkle and Associate Chris Capurso as they delve into the complexities of ancillary products in the auto finance industry. From GAP waivers to extended warranties, discover the latest regulatory developments and compliance challenges that are shaping the landscape for consumers, dealers, and auto finance companies.
Troutman Pepper attorneys Brooke Conkle and Chris Capurso discuss the Federal Trade Commission’s “Holder Rule” in the third of five special episodes devoted to auto finance issues. Although the Holder Rule has been around since the 1970s and is a staple of consumer finance contracts, there have been several recent, important developments. Brooke and Chris hop behind the wheel of this installment to review these developments, the position taken by the FTC and courts, and the potential impacts to dealers and finance companies.
Troutman Pepper attorneys Brooke Conkle and Chris Capurso helm this episode to discuss the Consumer Financial Protection Bureau’s (CFPB) recent annual report on consumer complaints for 2023. Although the report primarily focuses on consumer reporting, it includes an auto-finance section for those involved in auto loans and leases. Out of 1.6 million total complaints only 17,000 to 18,000 were directed toward auto finance-related issues; however, Brooke and Chris highlight some key takeaways. The bottom line: The CFPB pursues auto finance actions, and the most effective way to gain insight into the Bureau’s thinking is to examine the issues highlighted in the complaint report and ensure your processes are properly prepared.
In this pivotal episode of The Consumer Finance Podcast, host Chris Willis, alongside colleagues Brooke Conkle and Chris Capurso, explores the Consumer Financial Protection Bureau’s (CFPB) groundbreaking proposal for regular and extensive data collection within the auto finance industry. This episode is part of our special series on auto finance, where we unpack the implications of this initiative, rooted in the authority of Section 1022 of the Dodd-Frank Act, for both the industry and consumers. As the auto finance sector experiences significant growth amid rising prices and rates, we shed light on the CFPB’s strategy to enhance market monitoring and ensure transparency. Join us as we explore the potential impacts of this development, the reactions from major auto finance companies, and what this means for the future of consumer financial services. Don’t miss this insightful discussion that navigates the complexities of regulatory changes and their effects on the auto finance landscape.
On March 29, the Consumer Financial Protection Bureau (CFPB or Bureau) released its Consumer Response Annual Report, providing a high-level overview of the 1,657,600 consumer complaints received by the Bureau from January 1 through December 31, 2023. According to the report, the most-complained-about consumer financial product and service categories in 2023 were consumer reporting (79%), debt collection (7%), credit card (4%), checking or savings account (4%), and mortgage (2%). The CFPB’s 2023 Consumer Response Report found a continued increase in consumer reporting complaints, with more than one million of such complaints sent to the three nationwide consumer reporting agencies (CRA). The CFPB encourages companies to consider how best to incorporate complaint information into their institutional processes to help ensure that problems are detected early and addressed quickly.
On March 7, the Federal Trade Commission (FTC) announced a final rule updating recordkeeping requirements and extending the protections against misrepresentations of the Telemarketing Sales Rule (TSR) to businesses (Final Rule). It also announced a notice of proposed rulemaking to extend the TSR’s coverage to inbound telemarketing calls involving technical support services. These actions are part of the FTC’s current review of the TSR, which includes the Do Not Call (DNC) Registry rules and provisions banning nearly all telemarketing robocalls to consumers.
Comments on the Consumer Financial Protection Bureau’s (CFPB or Bureau) proposal to collect data from auto finance businesses that acquire or originate as few as 500 financing transactions a year are due by March 25, 2024.