Auto lending

The Consumer Financial Protection Bureau hit an indirect auto lender and a subsidiary with $48.3 million in fines and restitution on Thursday, accusing it of deceptive collection tactics.

Lawmakers from both political parties on Tuesday sharply criticized the Consumer Financial Protection Bureau's attempt to restrict or eliminate auto dealers' ability to markup a loan by citing their partnering lenders, arguing it would result in higher prices for consumers.

The CFPB hired Dr. Bernard Siskin three years ago to serve as the agency's expert witness when it brings discrimination cases against lenders. But Siskin has also been hired by JPMorgan Chase, Citigroup and other big banks to represent them in bias cases against the CFPB, causing issues for the agency.

WASHINGTON — Fifth Third Bank must pay a total of more than $21 million to settle separate claims by the federal government that the bank's indirect auto-loan business discriminated against African-Americans and that the bank deceptively signed up customers for a credit card add-on product.

Activity at credit unions has been on the rise since the Bank Transfer Day movement in November 2011. It remains to be seen, however, if credit unions can succeed at keeping many of those relationships.

Alliance Data Systems has agreed to work with Toyota on a new line of private-label credit cards and to manage the Japanese automaker's existing co-branded card program.

Bank of Montreal, Canada's fourth-largest lender, has agreed to buy General Electric's transportation finance business in the U.S. and Canada.

Prestige Financial Services, which focuses on car buyers who are in the bankruptcy process, is trying to keep pace in a fast-growing market.

Banks are seeing steady growth in consumer loan demand nationwide, particularly in auto loans and mortgages, according to a report released Wednesday by the Federal Reserve Board.

The U.S. auto lending industry continues its multiyear boom. What follows is a look at numerous metrics that reflect the red-hot state of the market.

Ally Financial surpassed Wells Fargo during the second quarter to regain its perch as the nation's largest auto lender, according to Experian Automotive.

FNBH Bancorp in Michigan has been unable to make an important move without its primary regulator's OK in the six years since its nonperforming assets hit double digits. It's an extreme example of the tension between past problems and future visions that freezes many banks.

An estimated 12 million Americans buy used cars through informal channels each year. Those consumers are underserved by traditional auto lenders, says Lending Club Chief Executive Renaud Laplanche.

Santander Consumer USA Holdings expects to endure more credit losses in the coming quarters, as it expands its portfolio of higher yielding, subprime loans. But its CEO sought to assure investors that its profits would far exceed those costs.

Santander Consumer USA Holdings in Dallas reported higher profits due to a spike in gains on loan sales.

The auto lender, which has been operating under tight regulatory restrictions since its bailout during the financial crisis, will now be allowed to use its federally insured deposit base to fund more of its loan portfolio.

The Consumer Financial Protection Bureau denied an auto dealer trade group's request for a document detailing limits imposed by Honda's financing arm on dealer price discretion.

Eagle Bancorp in Bethesda, Md., has sold its indirect auto loan portfolio to MainStreet Bank in Fairfax, Va.

TCF Financial in Wayzata, Minn., reported lower second-quarter profit as it paid more in salaries and employee benefits and a larger loss provision ate into net interest income.

The new regulations are meant to close loopholes in an interest rate cap that applies to active-duty soldiers and sailors. But financial institutions won at least one important concession.