Today's Headlines

    New Member Welcome

    AFSA welcomes the two new active member companies.

    RAC Asset Holdings LLC dba American Financial is a captive finance company that provides auto financing for its affiliate dealership company, American Car Center, with dealerships across the southeast.

    Auto Trakk, LLC is an indirect subprime vehicle leasing company and provider of vehicle lease servicing in 14 states.

    ICYMI - Himpler Testifies Before Congressional Committee

    AFSA Staff

    Last Thursday, AFSA EVP Bill Himpler testified before the House Financial Services subcommittee on Financial Institutions and Consumer Credit in a session entitled Examination of the Federal Financial Regulatory System and Opportunities for Reform. Himpler addressed the Consumer Financial Protection Bureau's (CFPB) regulatory overreach of the state-regulated consumer credit industry and the need for Congress to reform the bureau's practices, approve its budget, and amend its structure.

    On Wednesday, CFPB Director Richard Cordray appeared before the full House Financial Services Committee to deliver his semi-annual report of the bureau. Himpler's testimony and responses filled in critical context about the difficulty financial services providers are facing complying with the unbalanced regulations and enforcement actions put forth by the CFPB.

    Himpler noted that while many are focused on financial institutions being too big to fail, AFSA is concerned about those that are "too small to succeed" under the weight of CFPB overregulation. "AFSA strongly believes that credit should be available to everyone who can manage it, not just to the wealthy or those with perfect credit scores," said Himpler in written testimony. "It is not apparent that the CFPB shares this philosophy. The CFPB seems to believe that credit should only be extended to those borrowers who do not present any risk..."

    The committee addressed a variety of issues with regard to the CFPB, including the bureau's faulty use of disparate impact theory in vehicle finance, issues with the construction and use of the consumer complaint database and a general lack of balance between consumer protection and credit availability.

    We believe in the CFPB's mission to protect consumers, but that has to be balanced with ensuring the availably of credit and all too seems that the bureau does not have that balance in mind," said Himpler in response to questions from the committee.

    The video of the entire hearing is available via the House Financial Services Committee YouTube page.

    Hensarling Previews CHOICE Act 2.0

    House Financial Services Committee Chairman Jeb Hensarling (R-Texas) has circulated an outline of the new CHOICE Act legislation that will rewrite the Dodd-Frank Wall Street Reform and Consumer Protection Act and reform the leadership, structure, and authority of the Consumer Financial Protection Bureau (CFPB). According to committee staff, the CHOICE Act 2.0 is expected to be released at the end of the month.

    The administration has expressed support for overhauling the Dodd-Frank Act. On Tuesday, President Trump stated, "We're doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously but getting rid of many. The bankers in the room will be very happy, because we are really doing a major streamlining, and perhaps elimination and replacing it with something else."

    The new outline contains provisions similar to Hensarling’s February memo, including renaming the bureau as the Consumer Financial Opportunity Agency; allowing the sole director to be removed at will by the president; removing the Bureau's supervisory authority; limiting the CFPB's enforcement authority to enumerated statutes; and removing their unfair, deceptive, and abusive acts or practices (UDAAP) authority. It would also repeal mandatory advisory boards and repeal market monitoring authority.

    However, the outline does include some new reforms, such as having the president also appoint and remove a deputy director; establishing an Office of Economics to review rulemaking and enforcement; prohibiting the consumer complaint database from being published (instead of a full repeal); and reforming joint investigations and enforcement actions.

    While the Administration and House Republicans seem to support the CHOICE Act 2.0, the bill will likely face strong opposition from Democrats. House Financial Services Committee Ranking Member Maxine Waters (D-CA) has already released a statement criticizing the bill.

    AFSA to Participate in FTC Workshop on Protecting Service members

    AFSA Staff

    On July 19, AFSA will participate in a Federal Trade Commission (FTC)  workshop examining financial issues and fraud schemes that affect service members and veterans.

    The workshop will discuss financial resources available to military consumers, including those on financial readiness, fraud prevention, and the FTC’s Military Consumer Toolkit. The FTC’s workshop will bring together industry representatives, consumer advocates, and members of the military and military legal services to discuss a number of issues. Topics include:

    • Auto purchase, financing and leasing
    • Student and other lending, including installment credit practices
    • Information security issues
    • Financial literacy and capability, including identity theft and financial resources
    • Avoiding scams

    The workshop will be held in San Antonio, Texas.

    AFSA Publishes Federal Regulations White Paper

    AFSA Staff

    On April 7, AFSA’s State Government Affairs department published its white paper on Federal Regulation of the Financial Services Industry. While many financial institutions are licensed only by the states in which they operate, they must comply with an extensive set of federal regulations, in addition to the countless state requirements. Federal oversight of the industry has expanded drastically, creating numerous guidelines and regulations with which financial institutions must comply. AFSA’s white paper provides an overview of the myriad of federal laws that affect the operations of financial services companies.

    AFSA’s State Government Affairs team publishes white papers monthly, and members can find previous papers on AFSA’s website under the SGA Resources section.

    Best Practices Using Alternative Credit Data in the Automotive Financial Services Sector Webinar Registration Open

    Join us on Thursday, April 27 at 2:00 p.m. ET for "Best Practices Using Alternative Credit Data in the Automotive Financial Services Sector," presented by FactorTrust. This webinar is the next installment in the AFSA Business Partner series.

    FactorTrust recently researched auto financing sources' use of alternative credit data in their immediate or near-term business needs. The results reveal their best practices using alternative credit data around:

    • Goals related to the data's use in credit strategies 
    • Top sources in accessing the data
    • Types of specific data points proven most advantageous
    • Techniques most effectively used to evaluate data sources

    The webinar will be presented by Dan Richard FactorTrust's VP, Analytics & Product Strategy. He is responsible for driving strategy, planning and execution for Analytics, Product Strategy and Data Acquisition. Dan is an expert at leading the scoping, analytical development and strategic delivery of scoring models and attribute suites for business use cases including acquisition risk, fraud, direct marketing, account management, collections and enhancement of high-volume data processes.

    FactorTrust is the leading provider of non-prime credit and consumer data. Since 2005, FactorTrust has specialized in predictive credit scoring and data solutions for non-prime lenders. This data is predominantly not reported to the Big 3 credit bureaus. Data is reported to FactorTrust by it’s lender contributors either real-time or daily, allowing maximum impact on lending decisions.

    The webinar is open to AFSA members – Register Today!