Bloomberg: Banks Pushed by Regulators Send ‘Nastygrams’ to Car Dealers

Remember how car dealers fought to avoid being subject to the Consumer Financial Protection Bureau's jurisdiction, and won?  It turns out that the dealers are still experiencing pressure to comply with the Bureau's edicts. From Carter Dougherty's story:

Under pressure from the agency, large banks that routinely buy auto loans have been reviewing records to ensure the dealers they work with aren’t discriminating against customers on the basis of race or gender. When firms including Bank of America Corp. find evidence of possible unfair treatment, they are sending warning letters to the dealers.

* * *

Dealers are learning a “painful lesson,” said Richard Hunt, head of the Consumer Bankers Association, which represents large institutions. “If you provide a financial product to consumers, you will be under the oversight of the CFPB — one way or another.”


Leave a Reply

Your email address will not be published. Required fields are marked *