From: The Wall Street Journal
About 40 Lenders Expected to Be Supervised By CFPB
By Alan Zibel and Christina Rogers
WASHINGTON—The U.S. consumer-finance regulator is preparing to launch in-depth reviews of about 40 large auto lenders to determine whether the firms are following federal consumer-protection laws, according to people familiar with the matter.
The Consumer Financial Protection Bureau is expected on Thursday to propose supervising the largest nonbank auto lenders, an initial step that is expected to lead to examinations of such firms as early as next year. The move would, for the first time, draw the auto finance units of companies like Toyota Motor Corp. 7203.TO +0.06% , Ford Motor Co. F +0.67% , Honda Motor Co. 7267.TO -0.34% and Nissan Motor Co. 7201.TO -0.47% in for federal supervision. Such lenders made about $187 billion of the total $355 billion in U.S. auto loans last year, according to data from the Federal Reserve Bank of New York.