At least one of the examinations the Consumer Financial Protection Bureau (CFPB) completed in 2018 included instances in which auto lenders sold a GAP product to consumers under circumstances which the CFPB found led to an abusive practice. The regulator noted that lenders sold a GAP product to consumers whose low loan-to-value (LTV) meant that they would not benefit from the product.
GAP products cover the difference or “gap” between the amount the consumer owes on the auto loan and the amount received from the auto insurer in the event the vehicle is stolen, damaged, or totaled. Because many borrowers with low LTVs still purchased the voluntary protection product, the CFPB interpreted that to mean that consumers did not understand the product. “In response to these examination findings, the lenders have undertaken remedial and corrective actions, including reimbursing consumers for the cost of the product and establishing an LTV minimum for GAP product sales,” the report noted.
AFSA is working closely with the CFPB to highlight the important role that GAP coverage plays in the lives of American consumers.
At least one of the examinations the Consumer Financial Protection Bureau (CFPB) completed in 2018 included instances in which auto lenders sold a GAP product to consumers under circumstances which the CFPB found led to an abusive practice.… Read the rest
Join us on October 1 at 2:00 p.m. ET for Get untangled from manual loan origination processes¸ presented by White Clarke Group.
Are your manual processes tying you up in a knot? Loan origination procedures can be complex and time … Read the rest
The American Financial Services Association reiterated its opposition to Congressional efforts to limit the use of arbitration in contracts. AFSA strongly opposes HR 1423, the “Forced Arbitration Injustice Repeal Act” … Read the rest
The AFSA Nominating Committee has approved two new members of the AFSA Board of Directors.
Ofer Alon is the Chief Executive Officer for Quality Acceptance. He currently serves on the AFSA Vehicle Finance Board and the AFSA Independents Auto… Read the rest
The comment period for the first-ever regulations of the Fair Debt Collection Practices Act (FDCPA) closed today. In its letter to the Consumer Financial Protection Bureau (CFPB), the American Financial Services Association (AFSA) commended… Read the rest
The Consumer Financial Protection Bureau (CFPB) today announced upcoming enhancements to the Consumer Complaint Database. The changes include, “modified disclaimers to provide better context to the published data; integrating… Read the rest
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger informed congressional leaders and agency staff that she now supports a legal effort challenging the constitutionality of the regulator.
Numerous court cases argue… Read the rest
Join us on Wednesday, September 18th at 2p ET for Simplifying your IT Landscape, presented by FIS.
IT landscapes have become increasingly complicated while at the same time the demands on technology provisions have increased. The underlying… Read the rest
This week, the American Financial Services Association pushed back against another Congressional attempt to limit the use of arbitration in contracts. AFSA strongly opposed HR 1423, the Forced Arbitration Injustice Repeal (FAIR) Act,… Read the rest
The American Financial Services Association, which for more than a century has advocated for pro-consumer policies on behalf of the consumer credit industry applauds the Consumer Financial Protection Board’s implementation of… Read the rest
