Question of the Week: Auto Finance Violations

Question: 

Our lending department is in the process of reviewing our auto financing practices. Have you heard of any recent violations so we can check to ensure we are handling everything correctly?  

Answer: 

Yes. The Consumer Financial Protection Bureau’s Fall 2023 Supervisory Highlights: Auto Finance Special Edition describes the agency’s findings related to illegal practices in auto finance, including the repossession of cars after the borrower made timely payments or received loan extensions. This edition pulls from exams generally completed between Nov. 1, 2023, and Aug. 30, 2024. Although no credit unions were mentioned in the report, it provides supervisory observations to be aware of in the following areas: