Finance & Insurance

It’s no secret that lenders are facing enormous losses thanks to the pandemic stopping the economy dead in its tracks. What’s interesting is the lengths they’ll go to make the dire problem seemingly disappear. Exhibit A: Credit Acceptance Corp., which makes car loans to borrowers with poor credit histories. Because …

Compliance experts believe the Federal Trade Commission’s handling of a New York dealership case, in which the store agreed to pay $ 1.5 million for a slew of illegal and unethical practices in the finance and insurance office, may have far-reaching implications. Federal regulators in particular cited dealership-arranged financing, also …

The Federal Trade Commission’s settlement with Bronx Honda this year marks the first time the regulator has brought an unlawful discrimination claim against a car retailer. Compliance experts believe it could be a gateway to increased enforcement actions against dealerships by the FTC. Dealerships should work particularly hard in this …

Automotive loans in forbearance stayed relatively steady in June compared with record-setting growth in April and May, credit bureau TransUnion said last week. Flattening forbearance figures could be a subtle sign of improvement, but it likely represents a shuffling of impacted consumers. Auto accounts in financial hardship — defined by …

Identity theft is the leading cause of concern for auto lenders today, fraud experts say, after a wave of successful phishing attempts masquerading as important information about COVID-19 potentially lured thousands of consumers into giving up personal information. As forbearance and federal stimulus programs come to an end, TransUnion warns …

Two of the largest U.S. auto lenders are embracing caution as the automotive finance industry grapples with uncertainty regarding the duration and severity of the novel coronavirus outbreak. Lenders are weighing heightened risk from consumers impacted by the pandemic against increased competition over fewer deals because of tight new-vehicle inventories …

Modernizing the legal framework surrounding digital signatures is of utmost importance for automotive retailers and lenders, particularly in the age of the coronavirus. A new piece of federal legislation has the potential to update an older law covering digital signatures in financial transactions and bring the statute into the 21st …

TOKYO — In a land where American ways don’t always mesh with local consumers, Jeep, the most iconic U.S. brand, has turned to the most iconic of American strategies to fight for market share: It is offering the Japanese deferred payments and leasing deals. Both approaches are virtually unknown in …

Net income fell nearly 60 percent for Ally Financial Inc., one of the largest U.S. auto lenders, in the second quarter as the lender absorbed further impact from the coronavirus pandemic. Volatile used-vehicle values, record-high unemployment and more than a million consumers exiting forbearance protections were among the reasons the …