BB&T's auto-finance division will stop dealers from marking up the price on sales contracts, and instead will offer a flat-fee compensation program.
Starting July 1, dealers that work with the $189 billion-asset BB&T will no longer be allowed to mark up retail installment sales contracts. BB&T Dealer Financial Services, the unit of the Winston-Salem, N.C., company that originates auto loans, is making the change to benefit consumers, the company said in a news release.
"We are committed to the fair and equal treatment of all consumers," said Derek Lane, manager of BB&T Dealer Financial Services.
Regulators have recently raised warnings about the rise of subprime auto lending, and the Consumer Financial Protection Bureau has attempted to be more aggressive in its enforcement of consumer laws for nonbank auto lenders.