CFPB Issues 2024 Supervisory Highlights for Auto Financing

Recently, the CFPB released the 35th Edition of its Supervisory Highlights, with a focus on auto-financing and lending trends between November 1, 2023, and August 30, 2024.

According to the Bureau, these highlights document “significant findings across all aspects of consumers’ experiences with the auto-finance market,” with a focus on the documented trend of significant violations stemming from how the auto-finance market has handled optional or ancillary products.  These products, generally financed by consumers at the time of the loan’s origination, have been found to produce profits for auto-financing companies for the duration of the loan.  Examiners found that, while these products may benefit some consumers, they are often accompanied by, “unfair, deceptive, and abusive acts or practices throughout the lifecycle of add-on products.”