Trade Group: CFPB Non-Bank Oversight Threshold 'Too Low'
A trade group representing lenders is finding the Consumer Financial Protection Bureau’s proposal to regulate non-bank auto lenders too much to bear.
According to Automotive News, the American Financial Services Association says “the threshold the CFPB proposes for larger participants in the automobile finance market is too low,” and could disproportionately drive up compliance costs, push out smaller lenders from the auto finance game, and make things more difficult for the consumer as far as credit goes.
The threshold in question defines said participants as those originating 10,000 or more auto loans and leases in a given year, a definition that could fit 38 lenders representing 91 percent of all non-bank institutions. The AFSA suggests a threshold of 50,000 loans and leases in a given year, excluding smaller players while putting the oversight upon 17 lenders, or 86 percent of the non-bank market.
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