CFPB Asks DOJ to Investigate Automotive Lending Company for ECOA Violations

Auto Finance  •  CFPB  •  DOJ  •  ECOA  •  Fair Lending / Fair Servicing

​On August 10, 2015, the American subsidiary of an automotive lending company disclosed in an SEC filing that the Consumer Financial Protection Bureau (CFPB) had notified the company on July 31, 2015 that it had asked the DOJ to investigate the company’s potential violations of the Equal Credit Opportunity Act.  According ​to the filing, the CFPB’s referral relates to “(i) statistical disparities in markups charged by automobile dealers to protected groups on loans originated by those dealers and purchased by the Company and (ii) the treatment of certain types of income in the Company’s underwriting process.”  The filing also noted, however, that no threatened or pending legal or administrative proceedings are likely to have a material adverse effect on the company’s financial position.

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