Compliance | Auto Finance News - Part 3

Wells Fargo Seeks Approval of $394M Settlement

Wells Fargo & Co. and National General Insurance Co. will reconvene at the U.S. District Court of Santa Ana, Calif., on July 8 for preliminary approval on a proposed $393.5 million settlement, according to a court filing published yesterday. Wells Fargo has agreed to pay $386 million and National General will pay $7.5 million in […]

Arkansas Enacts Guaranteed Asset Protection Waiver Act

Last month, the Arkansas legislature passed House Bill 1672 to enact a statutory framework within which guaranteed asset protection (GAP) waivers may be offered in the state. Previously, GAP waivers were largely unregulated in Arkansas. As a result, creditors will need to familiarize themselves with the new law and ensure they take the necessary steps […]

Dealer Group Owes Ford Credit $45M

Ford Motor Credit has determined that Bart Reagor, co-owner of Lubbock-based Reagor-Dykes Auto Group, owes $45.3 million to the captive in its $112 million floorplan financing fraud suit against the dealer group, according to an amended proposed judgement filed with the U.S. District Court yesterday. Ford Credit already has recouped $74.7 million, which includes the former […]

American Honda Finance Dodges Class-Action Lawsuit

American Honda Finance Corp. has avoided a class-action claim that it was culpable in negligent supervision of one of its dealership partners, according to a unanimous opinion published by the Ninth Circuit Court of Appeals. The plaintiff, Harvinder Singh, alleged that the Auburn, Wash.-based dealer Hinshaw Honda did not provide him with three add-on features […]

CFPB Broadens Scope of Financial Education Tool

The Consumer Financial Protection Bureau expanded the audience of its virtual financial education tool, called Misadventures in Money Management, to include all active service members. When launched in 2016, the tool was developed for future service members who had not yet been shipped off to basic military training. Last week, the bureau widened the audience […]

CFPB Innovation ‘Sandbox’ Likely to Fuel State AG Enforcement

SAN DIEGO — Companies that participate in the Consumer Financial Protection Bureau’s proposed innovation-focused “sandbox” rules to spur innovation may be penalized by state attorneys general, lawyers said at the Auto Finance Innovation Summit last week. The CFPB released proposals earlier this year meant to encourage innovation in the consumer financial services space by allowing […]

What Creditors Should Know About Co-Debtors in Chapter 13 Consumer Bankruptcies

Auto lenders must have a basic familiarity with the consumer bankruptcy process. An essential component of any consumer bankruptcy is the automatic stay. The “automatic stay” is the name of the injunction that arises automatically upon the filing of any bankruptcy. The stay prevents lenders from, among other things, seeking to collect on a debt […]

Pennsylvania AG Targets Dealership Owner in Fraud Suit

The Pennsylvania Attorney General’s office has filed suit against buy-here, pay-here dealership Auto Now, on the grounds that the Wilkes-Barre dealer — and its owner — knowingly defrauded consumers by advertising a non-existent credit restoration program. The lawsuit names Auto Now’s owner, Thomas Hashem, as a defendant, a move that is in line with the […]
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