Indirect Auto Lenders Should Expect More Scrutiny

Law360, New York (January 8, 2014, 1:42 PM EST) -- On Dec. 20, 2013, the Consumer Financial Protection Bureau and the U.S. Department of Justice resolved by consent order their first joint fair-lending action in the indirect auto lending arena against Ally Bank and its parent, Ally Financial Inc., alleging that the company’s dealer compensation policy, which allowed for discretionary dealer pricing, had a disparate impact on certain borrowers in protected classes.

The $98 million in settlement payments detailed in the order, in monetary terms, represent not only the third-largest settlement ever in a DOJ fair-lending...
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