Auto lending

Banks and consumer groups are both eagerly awaiting an FCC decision about whether to loosen federal restrictions on robo-calling consumers. A $10.2 million settlement announced this week involving JPMorgan Chase brought the issue back to the forefront.

Many lenders shy away from adjusting monthly payments based on struggling borrowers' income for fear of losing too much money, but the Education Department's expansion of such plans for student loans and new data-crunching products have reframed the longtime discussion.

U.S. consumers in the first quarter borrowed more to pay for education and automobiles, but overall their debt burden was relatively flat, according to a new report from the Federal Reserve Bank of New York.

The loss of a key partnership with General Motors has left Ally Financial searching for new revenue streams. In the short term, the bank has ramped up its subprime auto lending, but to sustain its growth it must "get more out of customer relationships," says CEO Jeffrey Brown.

Millions of dollars spent on software upgrades are worth the hit to short-term profits, executives at the Buffalo bank said, because it will be able to run deeper credit profiles of borrowers.

The growth-minded regional bank is biding its time until rates rise and its M&A deals close by slowing riskier types of lending and diversifying its income sources.

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After releasing successive studies on the payday industry over the past two years, the Consumer Financial Protection Bureau is finally set to unveil Thursday sweeping proposals that could fundamentally change the business of short-term loans and other products

Ally Financial, the auto lender rescued by the U.S. government during the 2008 financial crisis, promoted Diane Morais to chief executive officer of the banking unit as Jeffrey Brown reshapes management.

Ally Bank, which has been known for online deposit-gathering and ads that poked fun at traditional banks, was the envy of some in the industry and a source of anger for others. But now it is looking to alter its business model as its struggling parent company retools.

Prosper Marketplace, an online lender for consumer loans, has found a new source of referrals: community banks.

A senior regulatory official on Wednesday continued the alarm bell over the brisk growth in auto lending, suggesting that some lending terms could be setting up banks for trouble.

Auto lending surged to an all-time high in the fourth quarter yet delinquencies remained low, Experian said in a report issued Thursday.

The chief executive officer of Exeter Finance responds to critics who argue that it's become too easy for Americans with low credit scores to finance a car purchase.

In unusually expansive comments, Consumer Financial Protection Bureau Director Richard Cordray provided new details Tuesday about proposals due soon from the agency while offering insights into an internal battle over easing a key mortgage rule.

Jeffrey Brown, suddenly elevated to CEO of Ally Financial, will have to accelerate the auto lender's diversification plan started by his predecessor, Michael Carpenter. Brown will need to explore new sources of originations, funding and investments.

Ally Financial, the auto lender bailed out by the U.S. government, appointed Jeffrey J. Brown as chief executive officer, succeeding Michael A. Carpenter, who's also leaving the board.

TCF Financial took $44 million in charges to rid itself of mortgages made before the housing collapse. A distressed-asset investor purchased more than $400 million in loans from the company, and another pool of bad mortgages may be marked for sale soon.

Ally Financial faced tough questions Thursday about its strategy in the wake of the Detroit automaker's decision to use its own in-house financing arm for its entire subsidized lease business.

The Justice Department has subpoenaed another subprime auto lender as it extends its investigation into the industry.