A Helpful Reminder from the CFPB
Today, the CFPB released a blog post entitled, Examining the potential impact of high vehicle costs on Americans with deep subprime credit scores. The report concluded, “It seems likely that many deep subprime consumers have been priced out of the auto loan market, at least temporarily. Unfortunately, available data don’t allow us to explore what these consumers are doing instead of buying vehicles.”
The CFPB will continue to seek additional data resources to learn more about deep subprime auto lenders who do not report to credit bureaus.
It’s assuring to see Washington policymakers share the same concerns as AFSA regarding subprime consumers being potentially priced out of access to credit, in this case for vehicle financing. The CFPB’s post is also a timely and helpful reminder that there are policies, such as interest-rate caps on small dollar consumer loans, that also severely hinder access to credit for many subprime consumers in tough times like these, and which policymakers can ensure will not harm consumers.
September 29th, 2022
