McGlinchey Stafford | Auto Finance News | Auto Finance News

Top questions lenders should ask fintech partners

The number of fintechs seeking lending partnerships is growing, and lenders are coming to terms with the risks and rewards of such alliances. Fintechs offer great opportunities, including reaching new customers, improving customer service, automating manual processes, reducing costs and improving service in the way consumers obtain financing. These opportunities also bring risks associated with […]

CFPB innovation network success hinges on broader AG acceptance, lawyer says

The freshly launched financial innovation network designed to enhance coordination among federal and state regulators likely won’t “materially change anything”  until the sandbox-opposing state attorneys general sign on, said McGlinchey Stafford Attorney Robert Savoie. The Consumer Financial Protection Bureau (CFPB) announced Tuesday that it is working with seven state regulators to form the American Consumer Financial Innovation […]

3 strategies for lenders to mitigate internal threats to consumer data security

With the enactment of the California Consumer Privacy Act of 2018 and the barrage of copycat legislation in other states, there has been significant focus on consumer data and privacy issues from the vantagepoint of the consumer: what information is collected and how consumers can direct companies what to do — or not do — with that information. While the discussion has largely […]

What a new Nevada spousal credit law means for lenders

Nevada recently amended its Equal Opportunity for Credit statute to give special rights to credit applicants who do not have individual credit histories because their accounts were established in their spouses’ names. (See Nevada SB311, effective October 1, 2019). The Nevada law applies to a creditor offering any credit product in Nevada, including a finance company […]

Reconciling refunds: Why aftermarket products became an afterthought

From the July issue: State and federal regulators are ratcheting up enforcement of ancillary product refunds. In the past few years, auto lenders have faced heightened scrutiny related to the percentage of consumers buying ancillary products, how the products are offered, and what disclosures are provided. But compliance examinations of late have veered in another […]

Compliance considerations when buying and selling customer leads

As an auto lender, you’re likely aware of the due diligence required when purchasing consumer leads. Lenders must exercise the same diligence when referring — or selling — declined leads downstream. Purchasing customer leads via referral programs has adapted as technology has allowed online lenders to communicate instantaneously with potential customers. Due to the nature […]

N.Y. Regulators Expand Enforcement Scope With Newly Created Division

New York's newly created Consumer Protection and Enforcement Division may bump up the frequency of the state's Dodd-Frank Act claims, Robert Savoie, partner at McGlinchey Stafford, told Auto Finance News. Dodd-Frank claims allow regulators to seek relief for borrowers outside the state where the litigation originated if the case is transferred to federal court — […]

Md. Senate Committee Rejects Bill to Preserve Watchdog Agency, Mandate Dealer Rate Disclosures

The Maryland Senate Financial Committee voted down a bill last week to extend the Financial Consumer Protection Commission’s regulatory power for two years, effectively decommissioning the state-run watchdog on June 30 and scrapping a requirement that auto dealers disclose to consumers the “buy rate” on loan contracts. The buy rate refers to the lowest annual […]