Author Topic: Biased Loans by Auto Dealers to Bring Bank Suits by CFPB  (Read 673 times)

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Offline Cincinnatus

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Biased Loans by Auto Dealers to Bring Bank Suits by CFPB
« on: March 23, 2013, 05:03:30 PM »
We shall never be abandoned by Heaven while we act worthy of its aid ~~ Samuel Adams

Offline Oldbrowser

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Re: Biased Loans by Auto Dealers to Bring Bank Suits by CFPB
« Reply #1 on: March 25, 2013, 08:25:50 PM »
The auto dealers do not approve car loans.   Car loans are approved by banks and credit unions .  The dealer has the customer sign a conditional sales contract which states that  the loan is conditional based on the dealer or the customer being able to secure funding.  There are some dealerships who carry their own contracts, usually for lower priced used cars.  They usually require a very large down payment for in house financing.

Offline Cincinnatus

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Re: Biased Loans by Auto Dealers to Bring Bank Suits by CFPB
« Reply #2 on: March 25, 2013, 08:32:37 PM »
The auto dealers do not approve car loans.

Who said they do?

From the article, first paragraph:

U.S. banks may be sued by the Consumer Financial Protection Bureau if they fund discriminatory vehicle loans made by auto dealers, according to new guidance released by the agency.

It was precisely this policy, demanding loans be made to the unqualified, which led to the mortgage meltdown in 2008.
« Last Edit: March 25, 2013, 08:33:53 PM by Cincinnatus »
We shall never be abandoned by Heaven while we act worthy of its aid ~~ Samuel Adams

Offline Relic

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Re: Biased Loans by Auto Dealers to Bring Bank Suits by CFPB
« Reply #3 on: March 26, 2013, 09:54:49 AM »
I drive through a bit of a rough neighborhood on my way to work. I see cars in the driveways that are newer and finer than my own. New Escalades. New Mercedes. New 300s. These people of seemingly modest means find a way to own new, premium automobiles.

Auto dealers do a lot of things, but denying people who can't afford a car a loan is not a traditional practice. Quite the opposite is true.

This is more back door reparations.


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