One of the nation’s largest providers of automobile financing, Santander Bank, has agreed to pay $26 million to end a two-state investigation into the financial institution’s alleged violation of state consumer protection laws related to its auto loan underwriting practices. [More]
subprime Auto loans
Subprime car loans are pretty much terrible. They’re exploitative of lower-income borrowers, financially risky for lenders, and frankly the only thing that keeps them from being every inch as disastrous for everyone as subprime mortgages — so far — is that their dollar values are lower.
Federal regulators continued their crackdown on not-so-upfront “buy-here, pay-here” auto dealers today, ordering a Colorado-based dealer to pay nearly $1 million in restitution and fines for operating an abusive financing scheme. [More]
In 2014, new car sales increased to 16.5 million, the highest level since 2006, but did too many car buyers take on more than they could afford? [More]
CFPB Orders ‘Buy-Here, Pay-Here’ Auto Dealer DriveTime To Pay $8M Penalty For Unfair Debt Collection Practices
For the first time in its existence the Consumer Financial Protection Bureau took action against a so-called “buy-here, pay-here” vehicle dealer, ordering the company to pay $8 million and fix its egregious ways. [More]
After recalling more than 30 million cars and facing a number of investigations, it’s probably safe to bet that General Motors Company would like to put 2014 in the rearview mirror. Before that’s possible the company will have to get through five more months and a new federal investigation into its financing unit regarding subprime auto loans. [More]