Automotive Finance and Consumer Protection Developments

In this Automotive Hour, our panel discussed recent federal and state consumer protection developments in the automotive finance sector, including recent and potential future supervisory and enforcement initiatives and priorities. They also offered considerations and best practices for compliance management during this era of increased regulatory scrutiny.

Key Takeaways

• Expect Federal Trade Commission rulemakings. Monitor and participate in the proceedings.
• Fair lending expectations will be more demanding. Now is a good time to consider expanding the scope of your fair lending compliance program.
• UDAAP. Expect more enforcement cases involving larger dollar amounts and a more aggressive focus on unfair, deceptive, or abusive acts and practices (UDAAP).
• Understand third-party risks. Conduct due diligence on prospective lending partners, dealers, servicers, repossession agents, and others. Identify key risk indicators and monitor for changes.
• Pick your battles. Decide in advance what positions will be worth fighting over in the face of aggressive government action, but understand that if you do not timely raise an objection, you may never be able to raise it again.

Morgan Lewis Automotive Hour is a series of automotive and mobility industry–focused webinars led by members of the Morgan Lewis global automotive team. The 2022 program is designed to provide a comprehensive overview on a variety of topics related to clients in the automotive and mobility industry. View past and upcoming presentations here >>