The CFPB held a public forum on indirect auto lending, an area into which it is expanding its regulatory reach. CFPB Director Richard Cordray noted that although the bureau does not have authority over car dealers, it does have jurisdiction over auto lenders, including banks that finance car sales indirectly through dealers.
Cordray expressed concern about disparate impact in pricing for auto financing across ethnic groups and gender lines. He urged auto lenders to develop “robust” fair lending compliance programs and to adopt practices that avoid fair lending risk, including a flat per-transaction fee or a fixed percentage of the amount borrowed.
Read Cordray’s remarks.