Fintech task force deliberates pros and cons of ‘big data’

More than 2.5 quintillion bytes of data are created every single day. As such, lenders are collecting vast amounts of consumer information and calling it “big data,” a key product to generate insights, support decision making, and enable automation.  Access to “big data” gives financial institutions more power over their consumers’ personal information and, in […]

• Nicole Casperson
• November 25, 2019
• Compliance & Regulation, Innovation & Technology, Risk Management

6 indicted for straw-buying fraud

Two owners of a Moline, Ill.-based car dealership — 4th Avenue Auto Sales — have been indicted along with four co-conspirators on straw-buying fraud and odometer tampering, according to a filing with the U.S. District Court for the Southern District of Iowa. The owners, Bradley Shane McCorkle and Isaac Bell, would recruit straw buyers to […]

• Joey Pizzolato
• November 22, 2019
• Risk Management, Update

Understanding how GLBA exemptions affect CCPA

The California Consumer Protection Act (CCPA) goes into effect in January, and although California Attorney General Xavier Becerra has said his office won’t enforce the law until July, lenders should start preparing now, said Michael Benoit, partner at Hudson Cook. One important aspect of that preparation is understanding how exemptions in the Gramm-Leach-Blilley Act (GLBA) overflow into the CCPA. […]

• Joey Pizzolato
• November 22, 2019
• Auto Finance Excellence, Compliance & Regulation, Exclusive, Risk Management

Testing the resiliency of auto ABS

The auto asset-backed securities market continues to attract investors — even from overseas. While market headwinds brought on by lengthening loan terms, trade disagreements and a potential economic downturn test the market’s resilience, closer examination of the auto ABS structure proves the strength of these bonds in the face of adversity. In fact, investor appetite […]

• Nicole Casperson and Joey Pizzolato
• November 21, 2019
• Capital Markets, Credit Performance, Exclusive, Features, Risk Management

GM’s lawsuit against Fiat Chrysler raises risks for PSA deal

General Motors Co.’s surprise racketeering lawsuit against Fiat Chrysler Automobiles NV has raised the risks for the Italian-American company’s plan to combine with Peugeot-maker PSA Group of France. The suit filed in federal court in the U.S. alleges Fiat Chrysler inflicted billions of dollars in damages by bribing United Auto Workers’ brass for competitive advantages […]

• Bloomberg News
• November 21, 2019
• Archives, Bloomberg, Risk Management

Massachusetts AG slaps used-car dealer with $1M fine 

The Massachusetts Office of Attorney General Maura Healey has fined a used-car dealership and its owner for allegedly engaging in unfair and deceptive sales practices that violated the state’s consumer protection law.   Framingham, Mass.-based AutoMax Preowned and its owner Howard Wilner have agreed to a $925,000 judgment that includes restitution to consumers to settle allegations […]

• Nicole Casperson
• November 20, 2019
• Risk Management

Fraudster sentenced to 8 years in prison for $1m auto scheme 

Two months after pleading guilty to bank fraud and aggravated identity theft, John O’Day was sentenced by the U.S. District Court of Maryland to eight years in federal prison for defrauding five auto lenders and 20 individual victims in a scheme that racked up more than $1 million in fake auto loan applications. O’Day has also […]

• Nicole Casperson
• November 11, 2019
• Risk Management

Rodo integrates insurance into app to mitigate cancellations

LAS VEGAS — Digital leasing app Rodo has launched an insurance marketplace in conjunction with Travelers Group to mitigate lease cancellations, said Patrick McKeever, vice president of sales and business development at Rodo. “One of the things we heard from our consumers — and certainly first-time buyers — is they had no idea how expensive […]

• Joey Pizzolato
• November 11, 2019
• Auto Finance Summit, Customer Experience, Exclusive, Leasing, Risk Management, Sales & Marketing