In November 2022, the CFPB announced its intention to build an auto lending data set. In furtherance of that goal, on February 23, 2023, the CFPB issued orders to nine large auto finance lenders. Amongst others, the CFPB seeks information on lending, servicing, defaults, and market values. Here is a sample order. The specified purpose states: The Bureau is issuing… Read More
The U.S. Supreme Court has been asked to review the California Supreme Court's decision in Pulliam. A copy of the Petition for Certiorari can be found here: Petition for Certiorari. Read More
On June 24, the FTC announced that purportedly is designed to fight deceptive advertising, crack down on bait-and-switch marketing, and put a stop to hidden add-on charges when consumers go vehicle shopping. According to the Notice posted in the Federal Register, FTC 6.23.22 Auto Rule NPRM, the NPR purports to The Federal Trade Commission (“FTC” or “Commission”) seeks comment on… Read More
The California Supreme Court today ruled on whether the FTC Holder Rule caps the amount fees that a prevailing consumer can recover from the holder of a Retail Installment Sales Contract that contains the FTC's "Holder Rule" language in the RISC. A copy of the Supreme Court's decision in Pulliam v. TD Auto Finance can be found here. Read More
Friends, We started this as a research bank 13 years ago, before law firm 'blogs became ubiquitous. Some have come and some have gone, but we've remained constant. In 13 years, we're now tallying almost 3,000 posts summarizing consumer financial services decisions for our subscribers, and the 'blog has evolved from a timely news source to also historical research tool.… Read More
We've seen a lot of them come and go in the last 12 years. Often emulated but never duplicated, our weblog surpassing 2,500 consumer finance decisions has become both a research and news tool for our multitude of subscribers. We celebrate 12 years since we first began this weblog, first as www.calautofinance.com and later migrated onto the Firm's website. Thank… Read More
The California New Car Dealers' Association has challenged Volvo’s OEM subscription service. Here are links to the Petition (http://www.informz.net/impexium-cncda/data/images/2019-1-15%20CNCDA%20Petition%20re%20Care%20by%20Volvo.pdf) and to the recent Press Release from the CNCDA (https://www.cncda.org/news/california-new-car-dealers-unanimously-granted-dmv-investigation-sought-in-volvo-petition/). Severson continues to monitor such alternative finance and ownership arrangements for the industry. Read More
In Fay v. Showcase Motors, No. 78111-1-I, 2019 Wash. App. LEXIS 2074 (Ct. App. Aug. 12, 2019), the Washington Court of Appeal found that the trial court erred in granted summary judgment to a car dealer on a consumer’s claim that the dealer misrepresented the down payment required to purchase a Shelby Mustang. We conclude the trial court erred in… Read More
In Murillo v. A Better Way Wholesale Autos & Westlake Servs., Llc, No. 3:17-CV-1883 (VLB), 2019 U.S. Dist. LEXIS 117043 (D. Conn. July 15, 2019), Judge Bryant confirmed a runaway arbitration award against a car dealer. The parties agreed to arbitrate their disputes before the American Dispute Resolution Center ("ADR") as a desk arbitration and under the American Arbitration Association… Read More
Representative Waters, who heads the House Financial Services Committee, issued a statement in advance of hosting hearings on discrimination in automobile purchasing and financing. According to the witness list, testimony was limited to consumer advocates and no witnesses from industry testified. (https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=403647) Representative Waters issued this statement: Thank you, Mr. Chairman. Buying a car is a significant purchase for many Americans… Read More
The CFPB just issued it’s Supervisory Highlights, paying particular attention to automobile finance and issues regarding ancillary products. The Bureau continues to examine auto loan servicing activities, primarily to assess whether servicers have engaged in unfair, deceptive, or abusive acts or practices (UDAAPs) prohibited by the Consumer Financial Protection Act of 2010 (CFPA). Recent auto loan servicing examinations identified unfair… Read More
In Fasusi v. Washington Motorcars, Inc., 2018 WL 4896722, at *1 (E.D.Va., 2018), Judge Brinkema issued a default judgment against a car dealer after discovery sanctions were awarded, the dealer's bankruptcy was dismissed, and the dealer's counsel withdrew. In this civil action, plaintiff brings a variety of statutory and common law claims against defendant stemming from defendant's alleged improper conduct… Read More
At the American Bar Association's meeting in Chicago this month, the ABA Section of Civil Rights and Social Justice proposed Resolution 104B on discrimination in auto lending, a copy of which can be found here. The resolution was withdrawn for further consultation with the ABA's Business Law Section. http://www.abajournal.com/news/article/house_adopts_trio_of_resolutions_on_gender_family_and_sexual_orientation Read More
In Ally Financial, Inc. v. State Treasurer, State of Michigan, 2018 WL 3520302, at *6–7 (Mich., 2018), the Michigan Supreme Court found that auto finance companies properly sought tax refunds for post-repossession deficiency balances. In the present case, we have to make sense of the fifth item, “repossessed property.” The statute clearly states that “repossessed property” is not part of… Read More
In Vega v. CarMax Auto Superstores, LLC, 2018 WL 3216347, at *5 (Cal.App. 2 Dist., 2018), the Court of Appeal held in an unpublished decision that a son, whose mother purchased a vehicle for him, could not recover for economic loss and personal injuries sustained when the vehicle he drove malfunctioned and had an accident, causing him personal injury and… Read More
In Dacumos v. Toyota Motor Credit Corporation, 2018 WL 2059562 (W.D.Wash., 2018), Judge Martinez dismissed a credit reporting claim against an automobile finance company deriving from an earlier settlement where the company allegedly agreed not to collect further on the Account. Plaintiff also contends that TMCC breached Paragraph 2.b. of the Agreement by reporting Plaintiff’s loan balance as $13,593.00 instead of… Read More
In Lindblom v. Santander Consumer USA, Inc., 2018 WL 573356, at *5 (E.D.Cal., 2018), Judge McAuliffe found that the class representative was not typical because her claim fell outside the statute of limitations and was not subject to equitable tolling. As proposed by Plaintiff, the class definition includes individuals who paid Speedpay fees during the applicable limitations period, which is on… Read More
In Duran v. Quantum Auto Sales, Inc., 2017 WL 6333871, at *8 (Cal.App. 4 Dist., 2017), the Court of Appeal held in an unpublished decision that a car dealer's Benson-tender did not insulate the dealer from liability. In this case, Quantum's pre-litigation offer went far beyond a willingness to take corrective action as contemplated by the drafters of the CLRA. We… Read More
In Dupreez v. GMAC, Inc., 2017 WL 6016592, at *3–4 (Md.App., 2017), the Maryland Court of Appeals confirmed that automobile RISCs are not subject to Maryland's usury statute because they are not "loans". Maryland courts have long held that the term “loan” in the Usury Statute does not extend to installment sales contracts for personalty. This is because under Maryland law,… Read More
A copy of the GAO's letter is here: GAO Letter on Indirect Financing Rule The Congressional Review Act requires all federal agencies to submit each rule to Congress and to the Comptroller General, and, as it did with regard to the CFPB's Arbitration Rule, Congress can disapprove of the rule within 60 legislative days by simple majority vote. Read More
