Ability-To-Repay Enforcement Comes To Auto Finance

By John Redding, Marshall Bell and Megan Whitehill, Buckley Sandler LLP (April 25, 2017, 12:18 PM EDT) -- In recent years, regulators and enforcement agencies have eagerly exercised their authority to prosecute what they perceive as unfair or deceptive acts and practices (UDAPs).[1] Unfortunately for the auto finance industry, these regulators and agencies show no sign of tapping the brakes on such actions. To the contrary, recent events suggest that they may be gearing up to hit the accelerator by using UDAP theories to extend ability-to-repay principles to auto finance....

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