The U.S. House of Representatives voted on Tuesday to reverse a measure that aimed to prevent discrimination in auto lending, the latest challenge to a consumer finance watchdog's oversight.
Wells Fargo & Co will pay $1 billion to settle with U.S. regulators who say the bank wrongly layered insurance on hundreds of thousands of drivers and routinely hit homebuyers with excessive fees, officials said on Friday.
Edmunds reports that nearly a third of trade-ins on new car purchases in 2017 were underwater.
Ride-sharing options may be proliferating and the percentage of Americans obtaining drivers licenses may be declining. But for now, reports on the end of the car-ownership model are greatly exaggerated.
Volkswagen will use the $21 billion loan to help pay for the upcoming costs from its diesel emissions scandal.
Ferrari announced that it is borrowing over $2.6 billion to fill its coffers and that of its soon-to-be-former parent company, FCA, as the two separate from each other.
Volkswagen wants $21.5 billion in loans as a short-term financial buffer to get through its emissions crisis.
Honda is altering its lending policies and setting up a $24-million compensation fund after the Consumer Financial Protection Bureau charged that some of its dealers have engaged in discriminatory practices.
The value of outstanding auto loans reached $886 billion in 2014, which was an all-time record, according to Experian.
Auto title loans are big business in the US, but increasingly, those institutions offering them are facing accusations of predatory lending. With this type of loan, people receive money in exchange for their vehicle's title. The funds come quickly, but they can also come saddled with interest rates of over 100 percent, along with high fees. A recent report from The New York Times examines the practice to see how it is affecting low-income borrowers across the nation.
A fight is brewing in the Michigan state legislature over whether to allow auto title loans (pictured above in California). This type of lending allows people to borrow against the value of their car while they keep driving it, but the money often comes with astronomical interest rates. Critics allege it's a form of predatory lending, but Michigan Senate Majority Leader Randy Richardville (R-Monroe) disagrees.
"Dealers have to discount those rates to be competitive. The current system saves customers money. Period." – Forrest McConnell
Longer loan terms and favorable interest rates are tempting consumers into pricier and more feature-laden vehicles, consequently driving average transaction prices up about three percent since 2009, according to a new report by Automotive News.
Unlike a house, where it can take months or years to evict owners behind on their payments, some subprime lenders can now simply switch off a late borrower's car.