The auto finance market has seen significant change over the past two years. Car prices have risen substantially, leading to larger loan amounts and higher monthly payments. These more expensive loans are beginning to have an impact on consumer and household financial stability.
On February 23, 2024, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) published an order establishing supervisory authority over a small-loan consumer finance company, using a Dodd-Frank Act provision that allows the Bureau to supervise certain nonbanks that it has reasonable cause to determine pose risks to consumers (the “Order”). The Order represents the CFPB’s first publicized use of this authority in a contested case.
In the realm of debt collection, adherence to regulations isn’t just a suggestion—it’s a legal obligation. Recently, Minnesota has adjusted the dates that collection agency’s licenses must be renewed. This change sparked ideas on how to potentially audit your Minnesota collection agencies to adhere to the new adjustment as well as verifying that already implemented laws are being followed.
The new rule, long expected after an initial proposal was floated early last year, comes after the agency said it reviewed market data related to the 2009 Card Act. Regulations tied to that law granted card issuers the ability to charge ever-increasing amounts of late fees.
The number of data breaches in the United States has increased significantly in the past ten years. According to an IBM study, more than 4 out of 5 companies have experienced a data breach at least once.
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