WASHINGTON—NAFCU and CUNA have joined with other trade groups in sharing concerns with the CFPB over its probe into the auto lending market.
As CUToday.info reported earlier, in November the Bureau initiated efforts to “build a new data set that will allow for a more robust understanding of market trends” by collecting data that from industry stakeholders and other agencies.
The CFPB said its efforts to build this dataset is in response to trends uncovered when CFPB examined the substantial increase in cost of automobiles since the beginning of the pandemic, stating that auto loans were on track to outpace student loans by the first half of 2023.
In the letter, the trades express concern with the CFPB’s probe into the auto lending market, calling out the “insufficient information and lack of authority” with this request. They argue that “a Request for Information (RFI) would have offered a far superior framework to ask for and collect information about auto lending data.”
The trades also point out what they say are the Bureau’s assumptions with their request, including using only automobile prices as the sole reason for the rapid changes within the auto market.
CFPB Urged to Update Data
In addition, the groups are calling on the CFPB to utilize and update already available data on the auto lending market, including the Bureau’s own auto loan data, which includes “origination activity, inquiry activity, borrower risk profiles, lending by neighborhood relative income level, and lending by borrower age.”
The Consumer Bankers Association, the National Independent Automobile Dealers Association and the American Financial Services Association also signed the letter.
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