In addition, the CFPB wants to start supervising the nation's 38 largest nonbank auto lenders, in a move that the agency says would create a level playing field for consumers by subjecting nonbank lenders to the same rules and oversight as banks.
The agency's most recent salvo came in an Oct. 28 speech by Darren Benhart, the OCC's deputy comptroller for supervision risk management. He voiced concern about longer loan terms and a drop in the borrowers' equity in their vehicles. "The results have yet to show large-scale deterioration at the portfolio level," Benhart said, "but we are definitely seeing the signs of increasing risk."
In a settlement announced by the FTC in May, subprime lender Consumer Portfolio Services, Inc., agreed to pay more than $5.5 million over allegations that it used illegal tactics to service and collect loans.