Insights

On January 11, 2023, CFPB published a Notice of Proposed Rulemaking titled “Registry of Supervised Nonbanks that Use Form Contracts to Impose Terms and Conditions that Seek to Waive or Limit Consumer Legal Protections.” The new rule would create a registry of “covered terms or conditions” and of the non-bank companies that include those terms…

By Rick Hackett, former CFPB Assistant Director and F&I Sentinel Advisory Board Member I recently spent some time with Paul Metrey of NADA and John Culhane of Ballard Spahr discussing the FTC’s proposed rule on Add-On Products in auto finance. You can hear that discussion in Ballard’s latest podcast here. Harking back to my time…

Co-Founder and CEO Stephen McDaniel, along with Allied Solutions Anne Holtzman and Peter Krall, talk about complexities of product refunds for finance companies and solutions in this Auto Remarketing Podcast, following this year’s keynote presentation at Used Car Week 2022.

California Gov. Gavin Newsom has now signed AB 2311 into law. By January 1, 2023 – just over three months from now – all GAP waivers sold in California must comply with the bill’s requirements. The legislation provides a number of new requirements and disclosures for GAP waivers financed in California, including a requirement for…

On August 9, 2022, the United States District Court in the Southern District of California issued an order denying Capital One’s motion to dismiss a claim against the finance company in connection with a GAP waiver amending a finance agreement Capital One took assignment of. The plaintiff in the case alleged that the GAP waiver…

A summary of a recent regulatory pronouncement in the state of Massachusetts regarding vehicle service contracts (VSCs) and the treatment of VSCs as insurance in certain circumstances. Last week the Division of Insurance in Massachusetts released a public statement regarding VSCs. The statement elaborates on the Division’s distinction between what constitutes a service contract and…

Summary of recent CFPB publications regarding aftermarket products and unfair, deceptive, or abusive acts or practices relating to the same. Planned features for F&I Sentinel’s FAIRRCalc to address regulatory activity. Yesterday, the federal Consumer Financial Protection Bureau (CFPB) released a blog post titled “Overcharging for add-on products on auto loans.” The post highlights the CFPB’s focus on…