Federal authorities have had a tough time determining which Ally customers might have suffered financial harm.
“Car ads must be truthful, loan terms must be clear, and dealer practices must be honest,” FTC official warns cars dealers.
Subprime auto loans have grown steadily since the financial crisis and now there are preliminary signs that high levels of early delinquencies are emerging in this market.
BMW is accused of violating the Magnuson-Moss Warranty Act, a federal law that prohibits companies from steering consumers to their own products and services as part of the maintenance and repair work covered by warranties.
January’s $11.6 billion jump in consumer credit followed a robust $17.9 billion gain in the previous month that was bigger than previously estimated, the Fed reported Friday.
More consumers than ever are opting to finance their new cars and trucks as the percentage of new vehicles purchased with financing in the fourth quarter of 2014 increased over the previous year to reach 84 percent.
Wells Fargo has set a ceiling for the first time on the amount of loans it will extend to subprime borrowers.
It was just a brief mention in the filing, but the investigation involves serious charges that race and ethnicity allegedly played a part in the loan markups.
Looking at a subset of consumers with subprime credit scores of below 550, the credit bureau Equifax found that these borrowers saw a medium improvement in their scores of 52 points three years after taking out an auto loan.
Borrowing for college and for the purchase of a vehicle is fueling higher overall U.S. household debt, with student loan delinquencies reducing the ability of young adults to start their…