Flat Fees Would Work for Auto Loans
I was expecting this conflict more than a dozen years ago, which was the first time I began talking about it. I’m seeing dealer associations and their lobbyists getting ready for battle. And I predict this time we’re going to lose.
The Consumer Financial Protection Bureau has turned its focus on dealer finance reserve, the percentage-point amount dealers add to an auto loan’s final interest rate as compensation for arranging the financing..
Most notably dating back to the class-action suit brought against Penske’s Covington Pike Toyota in Memphis in 2003 and other cases in the 1990s, we’ve seen a series of lawsuits alleging racial discrimination concerning dealer markup of interest rates.
Read the whole article on WardsAuto here.