The Consumer Financial Protection Bureau (CFPB) recently published a compliance bulletin addressing its concerns over observed trends in automobile repossessions.
Amid an overheated market for used cars, the CFPB noted that auto loan servicers may be incentivized into risky repossession practices. The CFPB reported that it has observed servicers engaged in unfair, deceptive or abusive acts and practices in connection, including, such as:
Practice Point: According to the bulletin, auto loan servicers should review their policies and procedures to ensure appropriate processes in place to cancel unwarranted repossession and halt repo referrals in a timely fashion. The CFPB also urges servicers to review consumer complaints to identify any potential infirmities in their repossession processes and identify noncompliant service providers.
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Bryan M. Mull
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