The Consumer Financial Protection Bureau continues to investigate several auto lenders for potential fair-lending violations.
According to sources familiar with the matter, the auto lenders are being referred to the Department of Justice. The firms have not been publicly identified.
In March, the CFPB issued a warning bulletin to the indirect auto lending industry stating it would cite lenders for fair-lending violations if their partners discriminate against any protected class, regardless of whether the discrimination was intentional.
Disparate impact has raised concerns with lenders, dealers and policymakers who question whether the CFPB can hold indirect auto lenders responsible for actions taken by dealers.
For the full piece see "CFPB Continues Crackdown on Auto Lending Industry" (may require subscription).