Just as total auto loan balances in Q4 2013 climb to $798.5 billion, the United States Chamber of Commerce has called upon the Consumer Financial Protection Bureau to draw up a detailed compliance guide for auto lenders returning to the fray.
Automotive News reports Experian Automotive saw $798.5 billion in total auto loan balances for Q4 2013, the highest recorded by the credit reporting bureau since the first numbers were published in 2007. Thirty-day delinquencies in the same period fell to 2.6 percent from their previous peak of 2.7 percent in 2012, though subprime loans — the source of most delinquencies — accounted for 36.2 percent of all outstanding loans, up from Q4 2012’s 35.7 percent.
Meanwhile, the U.S. Chamber of Commerce has tasked the CFPB with building a detailed compliance rulebook meant to standardize lending procedures and liabilities for collection actions undertaken by service providers. The request comes on the heels of a December 2013 consent order between the CFPB, Ally Financial and the U.S. Department of Justice, where the lender paid $98 million in restitution and penalties in a settlement regarding the use of the dealer reserve to issue higher interest rates on minority borrowers.