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.
He’s pointing at positions in the Kama Sutra he’d like them all to try.
Seriously, is there an “all stories must have a photo” rule driving all this crap stock photography?
I LOVE these stock photos so& hope that TTAC continues to use them frequently because they’re fertile caption title contest material.
Salesman: “So, we’ll go over the financing details on that vehicle, but first, per your request, here’s a before photo of my girlfriend – b cup – and here’s, voila! – her sporting her healthy D cups, compliments of Dr. Mathis.”
Boyfriend: “Looks awesome, bro! So saline solution is definitely the way to fly?”
Salesman: “She and I both felt is was the lower risk choice from a health standpoint. We can’t say if silicone is or is not truly inert, but given the controversy, why take any chances?”
I whole-heartedly support using the most awkward stock photos possible.
Trust me, there is nothing wrong with a B-Cup…
;)
@DeadWeight – it looks more like he is convincing the dude to change teams.
“Honest, it is only a pain in the ass at first.”
Probably.
The whole set for your viewing pleasure:
http://www.shutterstock.com/portfolio/search.mhtml?submitter=156220&searchterm=car%20showroom
Dude is gonna shop an A7 and show up in a wrinkled polo shirt? His girlfriend looks like she’s ready for a porno.
Most women are ready for porn. Especially those under 20 or over 45.
I’m not sure I agree.
These pictures on the finance related articles always crack me up.
It’s the only reason I click and comment. I don’t really read the article bit, car finance doesn’t interest me.
Simple rule; if she’s hot, she’s his sister until proven otherwise.
I am totally amused that at the time of posting this comment, 8/11 comments are about the photo.
Hey, the wrinkled polo is a big upgrade from white-T-shirt guy in the last installment of stock photo car buyer.
:D
He’s buying an A7! These people have no sense of occasion.
I’m always disoriented when a series switches characters halfway through the story.
That looks like a last-gen Mazda6 to me.
Get ready for 100 MONTH CAR LOANS!!!
If they’d introduce 50-year fixed mortgages maybe they could jump start the housing market lol!
Here’s how you explain it:
Wall street started bundling home loans together, “mortgage backed securities” and selling slices of those loans to investors. They were making big money…so they started pushing the lenders to make more loans.
The lenders had already given loans to borrowers with good credit – so they go bottom feeding – they lower their criteria…
Before, you needed a credit score of 620 and a down payment of 20%. Now they’ll settle for a 500 with no money down.
The buyer, a regular guy on the street, assumes the banks know what they are doing. He reaches for the American dream of owning a home.
The banks knew securities based on crap loans were risky so to control the risk they started buying a new kind of insurance called the credit default swap. This allowed them to remove risk from their books and make more loans. They could make more money.
One company was dumb enough to take on an unbelievable amount of risk…AIG. The teaser rate on the poor schlub who bought his home readjusts and goes up. He can’t pay. He defaults. Mortgage backed securities tank and AIG has to pay off all the banks they insured – all of them – all over the world – at the same time. AIG can’t pay up. All the banks book massive losses on the same day – and then they go under.
The whole financial system goes down.
If people were only buying credit default swaps to insure assets they actually owned the system would have been fine. It’s the naked (speculative, not insuring a buyer’s underlying asset – e.g. buying fire insurance on your neighbor’s house) credit default swaps that took down AIG and the rest of the system. Some estimate that 75% of the credit default swaps on the market in 2008 were speculative naked swaps, not asset insurance.
Man, I love all the stock photos of actors getting auto loans. I want to print them, and replace the stock photos that come in picture frames or something.
I think it would be even more fun to swap the background of the photo, while keeping the people just as they are.
“Brah, we could totally tag team this chick”
Never underestimate the ability of the male brain to go straight into the gutter in .02 seconds…
When do male brains ever leave the gutter?
Good point…
“I can totally afford this car, thanks to all the money I save by cutting my own hair!”
“I see here on the lease agreement, that once we sign, that you are required to abuse my pretend girlfriend in all the biblical ways, that we are to all attend a donkey show in TJ and participate in the act. I’d like to amend the contract to say that we will attend said donkey show for a minimum of 4 hours.”
Donkey show? What’s that?
Knowing is easy. It’s the trying to unknow afterwards you’ll find very difficult…
Great, I looked up Donkey Show because I was curious. Another thing to add to my list of freaky things that I know about but probably shouldn’t.
Also, why is that girl wearing about a 6″ heel in the shutterstock images to go car shopping? Seems kinda silly.
As for the actual article content, “Xtreme loans ™” probably should have some rules. It might be a good idea.
Why does every stock photo of a car dealer feature a salesman in a suit and not a polyester golf shirt and khakis? The only dude in a suit I’ve ever seen in a car dealership is me when I’m stopping in on the way home from work.
As a teenager in Australia in the 70s I do remember it was impossible to obtain a new car loan that exceeded 48 months and a used car loan exceed 36 months.
This seemed to be commonsense. Back then a person couldn’t get a home loan with a monthly repayment that exceeded 25% of his pre taxed income.
I do think lending standards should be toughened, maybe not back to those levels, but to levels that are more responsible.
I can see the people who claim we live in a free society, but sometimes the free need to be protected from themselves.
Banks and other forms of financial services to have a duty of care, a responsibility for the consumer.
So, is it better to have an industry that’s irresponsible or an individual. Which one will do the greatest harm to a nation?
The US (and the rest of the world) learned that “anyone with a pulse” financing eventually crashes and burns disastrously. More so with housing, but it won’t turn out well for cars either.
There are a lot of stupid people that want new cars immediately, but I think some sort of entity should play a role in not allowing people to buy a vehicle (or a house) outside of their means. It’s common sense to a lot of people, but then there are others that can’t do basic math and need some intervention from someone that can use a calculator and give them a boot to the head if needed.