Auto Finance Regulation Keeps Rolling

摘要

Federal and state law developments were rolling down the regulatory avenues of automotive finance during the past year. The Bureau of Consumer Financial Protection ("CFPB"), the Office of the Comptroller of the Currency ("OCC"), and the U.S. Department of Justice ("DOJ") were involved with significant consent orders and settlements related to forced placed insurance programs and capitalized cost reduction refunds to servicemember lessees. Further, a congressional resolution repealed the CFPB's fair lending guidance applicable to dealer rate participation, and a major automotive finance company resolved a nationwide class action in connection with the disclosure of purchase option fees charged to lessees. A major automotive finance company resolved a nationwide class action in connection with the disclosure of purchase option fees charged to lessees. On the state law front, legal developments dealt with loan versus retail installment sale classifications, the content of repossession notices, the prohibition of vehicle subscription programs, and unique fair lending disclosure requirements for retail installment sale transactions.