Last week, the Consumer Financial Protection Bureau (CFPB) issued the second in a series of reports based on its 2023 Auto Finance Data Pilot. While the first report discussed negative equity in vehicle finance transactions, the new paper provides a CFPB analysis of available data relating to vehicle repossessions and discusses statistical trends in repossessions from 2018 to 2023.
AFSA commends the CFPB for issuing a report that shares objective observations about conditions in the market relating to repossession. With large disruptions in the vehicle finance markets due to the pandemic and voluntary steps by industry to modify finance contracts for consumers, the past several years have been extraordinary. And this report makes clear that some observations are correlations between independent events for which causation cannot be asserted.
While the CFPB continues to discuss repossession in terms of harm to consumers, it is important to remind policymakers and consumers of the other side of the story. Repossession is a contractual remedy for default that is well-established under state laws, including the Uniform Commercial Code. Repossession is not a hidden, obscure remedy. On the contrary, consumers are well aware of the consequences of not paying their auto loans. The possibility of repossession as a remedy to default is clearly explained in standard vehicle finance contracts.
Vehicle finance companies work extremely hard to follow legally allowable procedures (laws, regulations, rules, legal precedents, etc.) to service delinquent vehicle finance accounts, including those that go into repossession. They have robust policies and procedures and rely on legal and compliance professionals. Though a last resort, repossession is sometimes the only option available. AFSA members recognize that the repossession process must be handled cautiously and are committed to ensuring that repossessions are conducted professionally and in full compliance with all applicable laws and regulations. AFSA members stress to their repossession contractors the necessity that all repossessions be peaceful and fully compliant with the law.
CFPB’s Second Report on 2023 Auto Finance Data Pilot
Jan 29, 2025
Last week, the Consumer Financial Protection Bureau (CFPB) issued the second in a series of reports based on its 2023 Auto Finance Data Pilot. While the first report discussed negative equity in vehicle finance transactions, the new paper… Read the rest
The Future of the Direct-to-Consumer Model w/ Brian Chance, Katie Johar & Eva Kellershof
Jan 29, 2025
The AFSA Extra Credit Podcast is back for 2025 with fresh takes, knowledgeable experts and timely conversations on the consumer credit industry.
First up? Brian Chance and Katie Johar of EY and Eva Kellershof of NETSOL take a deep dive on the… Read the rest
California CCPA Regulations
Jan 28, 2025
AFSA’s State Government Affairs team submitted a comment letter to the California Privacy Protection Agency regarding the proposed regulations for updates to the California Consumer Privacy Act (CCPA).
AFSA expressed strong … Read the rest
FTC Welcomes New Appointees
Jan 28, 2025
AFSA would like to congratulate the new FTC Chair Andrew Ferguson. As of January 20th, FTC Commissioner Andrew Ferguson is Chair of the Federal Trade Commission, taking over for former Chair Lina Khan. As Chair Ferguson was already a confirmed… Read the rest
Time for Accountability is Now
Jan 28, 2025
AFSA, in conjunction with our members, has worked to compile a list of policy requests to bring transparency and accountability to the Consumer Financial Protection Bureau (CFPB). These policies, focused on reforming the CFPB, will decrease… Read the rest
AFSA Education Foundation (AFSAEF) in Action
Jan 22, 2025
The AFSA Education Foundation is celebrating a milestone event this year, its 35th anniversary and thanks to the generosity of AFSA member representatives giving their time and financial resources annually and to establish an endowment,… Read the rest
AFSA Supports Bipartisan Credit Repair Scam Legislation
Jan 15, 2025
Reps. Sarah McBride (D-DE) and Young Kim (R-CA) reintroduced the bipartisan “Ending Credit Repair Scams Act” (HR 306) last week. This bipartisan legislation would protect financially distressed consumers from shady credit repair organizations… Read the rest
Congratulations to the 119th Congress Chairman
Jan 15, 2025
Yesterday, AFSA sent a letter to both Senate Banking Chairman Tim Scott (R-SC) and House Financial Services Chairman French Hill (R-AR) congratulating them on their selection as chairmen for the 119th Congress, and reiterating our appreciation… Read the rest
AFSA’s Response to the Supervisory Highlights
Jan 15, 2025
Last week, AFSA responded to the CFPB’s Auto Finance Special Edition of Supervisory Highlights. While the goal of these publications is to “help industry limit risks to consumers and comply with federal consumer financial law,” this most… Read the rest
Innovations & Insights: Fraud and Data Trends 2025
Jan 14, 2025
The increased digitization of the lending process, the use of big data and analytics, and efforts to enhance competitive finance offers and access to credit present opportunities that also come with heightened fraud and data privacy risks.… Read the rest