The final rule grants the CFPB authority to supervise any nonbank auto finance company that makes, acquires or refinances 10,000 or more loans or leases within a year. The CFPB will oversee these “larger participants” and ensure that they are in compliance with federal consumer finance laws, including the Dodd-Frank Act, Consumer Leasing Act, Equal Credit Opportunity Act and Truth in Lending Act.
This final rule will give the Bureau the authority to supervise about 34 auto finance companies and their affiliated companies that engage in auto financing.
The CFPB has also updated its supervisory examination procedures for bank and non-bank companies. Examiners will evaluate whether auto finance companies are:
- Fairly marketing and disclosing auto financing terms
- Providing accurate information to credit bureaus
- Treating consumers fairly when collecting debts
- Lending fairly
The rule will take effect 60 days after publication in the Federal Register.