Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

CFPB Proposes Oversight of Nonbank Auto Finance

Joe Mont | September 18, 2014

The Consumer Financial Protection Bureau is proposing to oversee large, nonbank auto finance companies for the first time at the federal level.

Auto loans are financed by both banks and nonbanks. Consumers can either get a loan through direct financing where they seek credit directly from a lender or through indirect financing where an auto dealer typically facilitates a loan from a third party. Banks, credit unions, and nonbank auto finance companies provide credit to consumers both directly and indirectly. Some nonbank finance companies are “captive” nonbanks, meaning finance companies owned by auto manufacturers who generally do only indirect lending.

Currently, the CFPB supervises large banks making auto loans, but not nonbank auto finance companies. Its rule proposal would extend its supervision authority to larger participants in that market. Through powers granted...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.