Auto lenders are now subject to strict regulations making them susceptible to investigation by the Consumer Finance Protection Bureau. The Bureau, active in bank lending, saw a need for greater regulation and oversight into auto lending. This is in direct response for consumer demand for more openness and transparency of the auto lending industry.
From the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against lenders engaging in unfair, deceptive, or abusive practices. The penalties resulting from these practices can result in fines and lawsuits.
One common area where consumers run into trouble with auto lenders is nonpayment of the auto loan resulting in repossession of the vehicle. After the vehicle is repossessed and sold at auction, there is often a deficiency balance between the amount of the original auto loan and the auction price of the car. At this point, the auto lender will aggressively pursue the consumer for that deficiency balance. If you are in this situation, contact a qualified debt settlement law firm. A qualified debt settlement attorney will not only know your rights under the law but will also work to reduce the debt owed to the auto lender. If you owe a deficiency debt to an auto lender after repossession or are behind on your payments and considering letting go of your vehicle, contact a qualified debt settlement attorney.
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