CFPB Issues Bulletin On ECOA Risks In Indirect Auto Lending

The Consumer Financial Protection Bureau (“CFPB”) recently issued a compliance bulletin warning financial institutions that they may face potential liability as indirect lenders for fair lending violations in the process of making indirect loans through automobile dealerships (the “Bulletin”). Indirect auto lending is a process where an automobile dealership will typically collect credit information from a consumer seeking financing and then forward the information to prospective lenders....

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FTC Issues Interim Rule Amending the Scope of its Identify Theft "Red Flags" Rule

The Federal Trade Commission (“FTC”) recently issued an interim final rule amending its “Red Flags Rule,” 16 C.F.R. Part 681. The amendment, which affects “creditors” under the FTC’s jurisdiction, limits the applicability of the Rule by making reference to a new definition of “creditor” in Section 1681m(e)(4) of the Fair Credit Reporting Act (“FCRA”). Section 1681m(e)(4) was part of the “Red Flag Program Clarification Act” enacted by Congress in December of 2010. The FTC’s interim rule directly references this new definition, discussed below...

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CFPB Issues Guidance Regarding the Doctrine of Disparate Impact under ECOA

The Consumer Financial Protection Bureau (“CFPB”) recently issued guidance (the “Guidance”) regarding its position on disparate lending discrimination under the Equal Credit Opportunity Act (“ECOA”) and its implementing regulation, Regulation B, 12 C.F.R. Part 1002. Pursuant to the Dodd-Frank Act, the CFPB has authority to enforce ECOA, as well as issue regulations and guidance interpreting ECOA.

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