CFPB rule will allow it to supervise captives
The Consumer Financial Protection Bureau recently published a rule that will allow agency regulators to supervise larger, nonbank auto finance companies. The rule extends CFPBês supervision of the largest banks and credit unions to finance companies that handle 10,000 or more in loans or leases in a year. In practice, that means automaker captive finance companies. CFPB estimates it will supervise 34 nonbank auto finance companies.
CFPB said its examiners will evaluate whether finance companies fairly market and disclose auto financing terms in conjunction with their dealer credit arrangers and provide accurate information to credit bureaus, while treating consumers fairly such as complying with the Equal Credit Opportunity Act.Download Bulletin PDF