House Committee Demands CFPB Information on Indirect Auto Lending

Last Friday, Congressman Jeb Hensarling, Chair of the House of Representatives Financial Services Committee, demanded that CFPB Director Cordray provide information regarding the Bureau’s examination of fair lending violations in the context of indirect auto lending.  Through a detailed letter reciting numerous requests by members of Congress for such information, Mr. Hensarling demanded that the CFPB provide details related to its disparate impact regression analysis and associated methodologies.  Mr. Hensarling noted that the CFPB’s “continued refusal” to provide this information “stands in stark contrast to your explicit promise to at least 48 Members of Congress to be open and transparent in the Bureau’s review of indirect auto lending.”

Accordingly, Mr. Hensarling demanded that the CFPB provide responses to all outstanding Congressional requests by March 13, 2014.  This information is important because it impacts the compliance efforts of dealers and entities offering credit through indirect lending companies, and it certainly impacts compliance efforts of indirect lenders themselves.  Mr. Hensarling noted that failing to provide the information would require his Committee to “consider invoking its compulsory process.”

If you have questions, please contact Spilman or other knowledgeable counsel.

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by R. Scott Adams

R. Scott Adams

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