In a new blog post today, the CFPB signaled that it intends to increase its focus on the auto lending market. The bureau noted that prices for new and used cars have increased significantly over the last year, and that “we expect that both the total amount of debt and the average loan size will continue to increase and that larger car loans will put increased pressure on some consumers’ budgets for much of the next decade.”
Among other things, the CFPB expressed concern about loan-to-value ratios in the auto lending market, auto loan servicing and collections practices and the subprime auto lending market in particular. “We are looking to better understand potential barriers to competition in the subprime auto lending market that may drive these and related outcomes,” the bureau said. “We will continue to research auto lending policies and practices that may hinder a fair, transparent, and competitive market. And, we will work with our counterparts at the Federal Trade Commission and the Federal Reserve Bank Board of Governors to use our collective authorities to address issues in the market.”
