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Automotive Industry Financing

Fox Rothschild LLP

Federal Court Will Hear Auto Dealers Challenge to New FTC Regulations

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On Oct. 7, the 5th Circuit Court of Appeals will hear arguments in a case that could significantly reshape how auto dealerships operate. The National Automobile Dealers Association is arguing that the Federal Trade...more

Ballard Spahr LLP

Update on Petition to Review FTC’s CARS Rule

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Petitioners in the challenge to the Federal Trade Commission’s (“FTC”) Combating Auto Retail Scams Rule (“CARS Rule”) filed their Petitioners’ Brief on March 15, 2004 in support of their petition for review, and a who’s who...more

Morgan Lewis

FTC’s Final ‘Cars Rule’ on Dealer Sales Practices: Implications for Banks, Auto Finance, and ‘captives’

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The Federal Trade Commission recently issued a final rule that is squarely aimed at changing the way dealers interact with customers in the financing process. The final rule takes effect on July 30, 2024....more

Ballard Spahr LLP

FTC issues final CARS Rule setting new requirements on vehicle sales

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On December 12, 2024, the Federal Trade Commission (“FTC”) announced its Combating Auto Retail Scams Rule, otherwise known as the “CARS Rule,” setting new requirements on the sale, financing, and leasing of vehicles by motor...more

Troutman Pepper

CFPB-New York AG Lawsuit Analyses Against Subprime Auto Financer - The Consumer Finance Podcast

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Please join Troutman Pepper Partner Chris Willis for a solo episode as he shares his thoughts about the recent lawsuit between the CFPB and the New York State Office of the Attorney General against a subprime auto finance...more

McDermott Will & Emery

Automotive Finance Update: Aktualisiertes Merkblatt Der Bafin Zu Finanzierungsleasing

McDermott Will & Emery on

Die BaFin hat kürzlich ihr Merkblatt zur aufsichtsrechtlichen Einordnung von Finanzierungs-leasing aktualisiert. In seiner neuen Fassung ist das Merkblatt nun besser strukturiert und hinsichtlich einiger Aspekte eindeutiger...more

ArentFox Schiff

FTC Publishes Reports on Auto Sales Practices

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On July 30, 2020, the FTC announced two new staff reports which highlight some of the alleged challenges and confusion consumers claim they face in buying and financing a car, particularly relating to charges for add-on items...more

Foley & Lardner LLP

Top Considerations for Accommodation Agreements with Distressed Suppliers

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In many cases where a supplier in the automotive industry is in financial distress, its customer(s) will provide support to the supplier through financial and other accommodations, in order to maintain a continued flow of...more

Robins Kaplan LLP

Financial Daily Dose 12.18.2019 | Top Story: Fiat Chrysler and Peugeot Boards Agree to $50 Billion Merger

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Fiat Chrysler and rival Peugeot have agreed to binding merger terms that, if approved by US and European regulators, would create a “$50 billion auto giant that would rank among the world’s largest car companies by sales”....more

Ballard Spahr LLP

DoD to propose amendment to MLA regulations on auto financing

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The Department of Defense announced in its Fall 2019 rulemaking agenda that it is engaged in proposed rulemaking to amend its Military Lending Act (MLA) regulations, apparently in order to allow non-bank creditors to provide...more

Ballard Spahr LLP

GAO to opine on whether CFPB indirect auto finance guidance is a rule subject to disapproval under the Congressional Review Act

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American Banker has reported that the Government Accountability Office has accepted a request from Senator Pat Toomey on whether the CFPB’s indirect auto finance guidance issued in March 2013 is a “rule” under the...more

Ballard Spahr LLP

FTC sends 2016 ECOA report to CFPB

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The FTC has sent its annual letter to the CFPB reporting on the FTC’s activities related to compliance with the Equal Credit Opportunity Act and Regulation B. The FTC has authority to enforce the ECOA and Reg B as to...more

Ballard Spahr LLP

Republican members of House Financial Services Committee release new report on CFPB’s auto finance actions

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Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, titled “Unsafe at Any Bureaucracy, Part III: The CFPB’s Vitiated Legal Case Against...more

Benesch

Private Equity Quarterly Report - Q2, 2015: Benesch Aerospace and Automotive Market Intelligence

Benesch on

Aerospace Market Overview - A record-setting year for aircraft orders has created a huge production backlog, which is good news for commercial aircraft manufacturers and tier suppliers. Elsewhere, machine vision,...more

Ballard Spahr LLP

House Financial Services Committee passes CFPB-related bills including bill creating TRID Rule hold harmless period

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Wednesday, the following four CFPB-related bills were passed by the House Financial Services Committee: H.R. 3192, the “Homebuyers Assistance Act”: The bill would provide a hold harmless period for the TILA/RESPA Integrated...more

McNees Wallace & Nurick LLC

Supreme Court Slams The Brakes On Challenge To Disparate Act

As of now, the Equal Credit Opportunity Act (ECOA) prohibits dealers from unintentional, or “disparate impact,” discrimination in setting dealer reserves in auto financing. This disparate impact can result from policies or...more

Stinson - Corporate & Securities Law Blog

CFPB Finalizes Rules to Regulate Nonbank Auto Lenders

The CFPB adopted a final that allows the agency to supervise larger nonbank auto finance companies for the first time. The CFPB also released the examination procedures that its examiners will use. Currently, the Bureau...more

Ballard Spahr LLP

House Democrats request auto fair lending information from the CFPB

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We have previously blogged about the CFPB’s laser-like focus on the fair lending practices of banks and non-banks purchasing auto finance consumer contracts from auto dealers....more

The Volkov Law Group

CFPB Targets Auto Financing For Enforcement

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The Consumer Finance Protection Bureau continues to spread its wings in the enforcement arena. It is an agency born and confined in political controversy. ...more

Ballard Spahr LLP

How the CFPB’s stance on ECOA in auto finance will raise consumer prices

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Ever since the CFPB’s release of its bulletin relating to disparate impact analysis of dealer rate participation last week, the press and consumer advocacy groups have been buzzing about the Bureau’s stance and its potential...more

Ballard Spahr LLP

CFPB Issues Guidance on Indirect Auto Lending ECOA Compliance

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The Consumer Financial Protection Bureau has issued guidance on fair lending compliance for indirect auto lenders. The guidance targets the practice of “dealer markups.” This practice involves an auto dealer charging the...more

Ballard Spahr LLP

The CFPB previews its coming auto finance fair lending enforcement actions

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Earlier today, the CFPB released its guidance bulletin with respect to automobile indirect finance fair lending issues. The bulletin’s intent is unmistakably clear from the accompanying press release’s tag line: “CONSUMER...more

Ballard Spahr LLP

So this is what the CFPB means about leveling the playing field?

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My colleague, Chris Willis, posted his reaction to CFPB Bulletin 2013-02, which provides guidance as to how the CFPB will apply ECOA and Reg B to dealer rate participation in the auto finance business. Except for Chris’...more

Ballard Spahr LLP

The CFPB Stretches ECOA Past the Breaking Point with Auto Finance

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In a story released last night, Carter Dougherty at Bloomberg reports that the CFPB has warned “at least four banks” that it may take enforcement action against them under ECOA, alleging that a “policy” of “allowing” dealers...more

Ballard Spahr LLP

CFPB lawyer discusses disparate impact in auto financing and says important development to happen soon

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At the ABA Consumer Financial Services Committee meeting earlier this week, Rick Hackett, Assistant Director of the Research, Markets and Regulations Division of the CFPB, spoke about “Discretionary Pricing in Indirect Auto...more

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