Refunds associated with guaranteed asset protection coverage and violations in the Truth in Lending Act are the top two compliance issues Indiana’s Department of Financial Institutions encounters, General Counsel Lyndsay Miller told Auto Finance News. To that end, the regulator is taking an educational approach to compliance when working with auto lenders in the state, rather than an enforcement approach.
“We understand that [auto lenders] are under a lot of obligations to comply with a lot of different rules and regulations,” Miller said. “We’re looking for an opportunity to work collaboratively [with lenders] to identify the issue and looking toward how to get everyone on the right path to the future. That’s our goal, and we mean it. We always want our door to be considered open.”
While many states — such as New York, California and Massachusetts, to name a few — take an enforcement approach to regulatory compliance, Indiana’s Department of Financial Institutions hopes “an open-door policy” will facilitate a culture of compliance with “minimal to no violations,” Miller explained. “We want to get whatever industry we’re working with first to feel that they’re comfortable with us to come and ask us a question,” she added.