DOJ, N.Y. Regulator Subpoena Capital One

By: Gregory Arroyo MCCLEAN, Va. ─ Add Capital One to the growing list of finance sources that have received subpoenas from state and federal regulators regarding subprime auto finance originations and securitizations. According to a Feb, 24 regulatory filing with the Securities and Exchange Commission, the finance source received subpoenas from the New York District ... Read More »

Santander Agrees to $9.35 Million DOJ Settlement

WASHINGTON, D.C. — Santander Consumer USA Inc. has agreed to pay at least $9.35 million to resolve a lawsuit filed by the U.S. Department of Justice (DOJ), which charged the auto finance source of violating the Servicemembers Civil Relief Act (SCRA). The complaint and the settlement, which is subject to court approval, were filed on ... Read More »

CPS Subpoenaed By DOJ

IRVINE, Calif. — In a regulatory filing posted last week, Consumer Portfolio Services revealed that the U.S. Department of Justice has subpoenaed the finance source, requesting documents related to its subprime auto finance practices and related securitization activities. CPS received the subpoena on Jan. 14, according to the Securities and Exchange Commission filing. “Other purchasers ... Read More »

Credit Acceptance Subpoenaed by DOJ

SOUTHFIELD, Mich. — In a Dec. 9 regulatory filing, Credit Acceptance Corporation revealed that it has received a civil investigative subpoena from the U.S. Department of Justice (DOJ). The subpoena requires the finance source produce certain documents related to auto lending practices in the subprime market. Earlier in the month, Credit Acceptance received a civil ... Read More »

CFPB Fines Subprime Finance Source $2.75 Million

WASHINGTON, D.C. — On Wednesday, the Consumer Financial Protection Bureau (CFPB) ordered First Investors Financial Services Group Inc. to pay a $2.75 million fine for providing inaccurate information to credit reporting agencies. The issue was related to computer system flaws, which the agency said impacted “tens of thousands” of the auto finance company’s customers. Texas-based ... Read More »

Industry Responds to New York Times Op-Ed on Subprime Auto Loans

Recent reports that the Department of Justice (DOJ) is looking into the subprime auto finance market have spurred a discussion about whether such loans will go the way of subprime mortgages. According to a New York Times op-ed piece published Friday, predatory auto loans have been a growing problem — but industry associations have stepped ... Read More »

Ally Reaches $98M Settlement with DOJ, CFPB for Lending Discrimination

NADA Issues Statement on Joint CFPB/DOJ Enforcement Announcement