Canadian police bust fraud scheme 

A scheme racking up C$800,000 ($600,968) in fraudulent auto loans has been busted after a yearlong investigation. Canada’s Calgary Police Service discovered that two perpetrators had been using stolen identities to obtain financing for vehicles. The victims of identity theft were held responsible for the vehicle loans taken out in their names. After obtaining vehicles, the […]

• Nicole Casperson
• August 23, 2019
• Risk Management

NJ AG steps up auto enforcement

The New Jersey Attorney General’s office has reached settlements with two dealership groups engaged in alleged consumer fraud, according to an announcement. Auto Mall 46, which does business under 10 dealership names, agreed to pay $219,927 in civil penalties for altering the price on sales and lease documents to an amount other than what was […]

• Joey Pizzolato
• August 22, 2019
• Compliance & Regulation, Risk Management

5 strategies to beef up cybersecurity

As financial institutions turn to digital infrastructure for scalability and data processing, the need for a robust cybersecurity framework is more vital than ever. However, defending against a pervasive and hidden threat can be challenging. “Too often we have a narrow definition of cybersecurity,” said Bill DeLong, Security National Automotive Acceptance Co.‘s senior vice president and chief […]

• Bianca Chan
• August 20, 2019
• Auto Finance Excellence, Innovation & Technology, Risk Management

Startup lender reveals strategy to disrupt auto finance [Podcast]

How do you measure risk for consumers without long credit histories in the U.S.? That’s the question Amitay Kalmar confronted when he founded Boston-based Lendbuzz in 2016. Three years later, Lendbuzz is carving out a share of potential auto loan customers by leveraging machine learning and data analytics. The startup lender targets foreign-born residents, such […]

• Bianca Chan
• August 19, 2019
• Auto Finance Excellence, Operations, Podcast, Risk Management

FBI arrests fraudsters in $1.7M auto scam

The Federal Bureau of Investigation has arrested six fraudsters for falsely obtaining millions of dollars in auto loans. The scammers operated three fake dealerships — called Premier Luxury Motors, Platinum Motors Auto Sales, and 5-Star Motorsports — which had no employees, inventory, or licenses. The perpetrators secured 80 fraudulent auto loans worth $1.7 million, though […]

• Nicole Casperson
• August 16, 2019
• Risk Management

Court decision muddles proposed FDCPA rule

A ruling from the Seventh Circuit Court of Appeals could complicate the Consumer Financial Protection Bureau’s proposed guidelines for the Fair Debt Collection Practices Act as it relates to electronic validation notices, Chris Willis, a partner at Ballard Spahr LLP, told Auto Finance News. “[The decision] is throwing a fly in the CFPB’s ointment for […]

• Joey Pizzolato
• August 16, 2019
• Auto Finance Excellence, Compliance & Regulation, Risk Management

Tariff threat rattles investors as deadline looms

Turmoil surrounding U.S. tariffs on car imports is likely to deal a blow to the global economy as uncertainty has made investors “nervous” about an incoming recession, William Strauss, senior economist at the Federal Reserve Bank of Chicago, told Auto Finance News. The nervousness, in turn, has fueled the U.S. Treasury Department's yield curve to […]

• Nicole Casperson
• August 15, 2019
• Risk Management

Pennsylvania dealers nailed in 4-year fraud scheme

The owner and finance manager of two Erie County, Pa.-based dealerships — Lakeside Auto and Lakeside Chevrolet — have been indicted on 17 counts of auto fraud, according to an announcement by the Department of Justice on Tuesday. According to the indictment, Owner and former President of the National Independent Automobile Dealers Association, Andrew Gabler, […]

• Joey Pizzolato
• August 14, 2019
• Compliance & Regulation, Risk Management