In a February 22nd article on SubprimeNews.com, Dealertrack’s Compliance Counsel Randy Henrick is mentioned as correctly hinting at a new philosophy in Washington on how to regulate auto dealers that comes from the CFPB philosophy of regulation. During a recent Free Dealertrack Compliance webinar he stated “It really comes from the CFPB philosophy of regulation. That is not to write rules but to bring enforcement action. The enforcement action in effect becomes the rules. You may not know what you’re doing is deceptive, unfair or abusive. But they’ll file an action against you and when that gets publicized, that in effect becomes the rule.”
Report: CFPB Set to Sue Four Banks Over Auto Lending
By Nick Zulovich, Editor
February 22, 2013
WASHINGTON, D.C. — In what the compliance counsel from Dealertrack Technologies cautioned might be coming, an online report earlier this week said the Consumer Financial Protection Bureau has told at least four banks that it may sue them over vehicle loans and interest-rate markups by dealers that appear discriminatory, according to three people familiar with the matter.
At least four banks received letters from the CFPB last week, giving those institutions 15 days to provide an explanation, the sources told Bloomberg BusinessWeek. The individuals asked not to be identified because the plans aren’t public.
Read the full article here