Objects in the mirror are closer than they appear: Auto finance industry keeps its sights on impending regulation

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12/10/2013 by Automotive
Objects in the mirror are closer than they appear: Auto finance industry keeps its sights on impending regulation

At a glance

Although most auto dealers are exempt from the Consumer Financial Protection Bureau’s (CFPB’s) supervisory authority, CFPB’s oversight of automobile finance transactions is expanding. In the upcoming months, auto lenders and dealers are likely to see increased regulatory scrutiny around consumer protection matters, and this could mean significant changes for the industry.

It's time for auto finance executives to assess the changing regulatory landscape and be prepared for increased oversight from the Consumer Financial Protection Bureau's (CFPB's) supervisory authority or enforcement agencies. PwC's latest auto finance publication, "Objects in the mirror are closer than they appear: Auto industry keeps its sights on impending regulation", takes a closer look at six areas of focus to meet regulatory requirements on the horizon. These will help you and your organization to develop regulatory oversight, avoid costly penalties and manage reputational risks. This publication includes:

Six areas of focus: Working together to meet regulatory requirements

  • Maintain high standards of transparency with consumers
  • Keep after-market products above board
  • Apply lessons learned from other industries
  • Examine current policies for adherence to fair lending guidance
  • Pay close attention to discretion throughout the transaction
  • Keep an eye on regulatory action regarding credit origination and pricing

PwC can help the auto finance industry address the CFPB concerns and bring insight and knowledge to enhance the collaboration between lenders and dealers.