CFPB issues bulletin on auto lenders' discriminatory practices

Banks could face legal action for funding loans for auto dealers who ratchet up borrowing rates for consumers in ways that reflect racial disparities, the Consumer Financial Protection Bureau said in new guidance. Richard Hunt, CBA president and CEO, said the action follows lawmakers' decision to leave auto dealers out of the Dodd-Frank Act. "Congress dealt the American consumer a real clunker by not guaranteeing all consumers are protected equally at all points of purchase," Hunt said.

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Bloomberg Businessweek · AmericanBanker.com (free registration) · Hill, The

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