High-Tech Repo Men Are Reshaping Subprime Auto Lending
Since the collapse of the subprime mortgage market, lenders have all but stopped offering loans that sound too good to be true. But that's not the case with subprime automobile loans, which lenders continue to market aggressively to consumers with imperfect credit.
WORTH THE RISK? Even if a lender has strong doubts about a borrower's ability to make monthly payments, it may make the loan anyway because technology has made it easier to find and repossess the car, said MVTRAC's Scott Jackson.
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Complaints against collectors logged in the Consumer Financial Protection Bureau’s database rose in June but trailed April's total. more »
A Government Accountability Office report on medical credit cards and related products follows a request from lawmakers who have expressed concerns about medical debt and predatory lending against people with no insurance or not enough insurance. more »
"We are jumping through hoops every day to comply with regulations," said Mike McHugh, the president and CEO of Continental Home Loans, in Melville, N.Y.
Nonbank mortgage lenders are chafing at a report from a government watchdog claiming they are less regulated than large banks and pose increased risks to Fannie Mae and Freddie Mac. more »
"This is supposed to be an independent agency that deals with facts, not innuendo," said Richard Hunt, president of the Consumer Bankers Association.
The banking industry is pushing back against a plan released this week by the Consumer Financial Protection Bureau to publicize more details about consumers' individual complaints about financial companies. more »
The U.S. Department of Education has not properly overseen the collection agencies it hired to pursue delinquent federal student loans, according to an audit released by the department's inspector general. more »
New rules published by New York State regulators include better disclosures for collection communications, provisions for email, protections against time-barred collection and stronger verification procedures. more »
Consumer spending slowed in June, but remained strong in several sectors, according to First Data Corp., a global payment technology and services firm. more »
STEADY OUTLOOK: "We expect delinquency rates to fluctuate at this lower end of the range for the foreseeable future," says James Chessen, the chief economist of the American Bankers Association.
The percentage of U.S. consumers who are late on their loan payments remained at near-record lows in the first quarter, according to a new report by the American Bankers Association. more »
BEST AND BRIGHTEST: "Your GPA is an indicator of how focused and responsible you are, so it's a good indicator of your propensity to pay a loan back on time," says Upstart co-founder and Chief Executive Dave Girouard.
When even a millennial with a six-figure income and a 750 FICO score can't snag a loan with a decent interest rate, there's something wrong with the system. more »
The plaintiff seeks class-action status, alleging World Acceptance misled investors and failed to disclose unfavorable business facts. more »
Complaints filed with the Consumer Financial Protection Bureau, along with most consumer statute lawsuit filings, dropped in May. more »
The city council in Victorville, Calif. has passed a 45-day moratorium on permits for payday lenders as it explores the risks the short-term loan businesses pose to the city's low-income population. more »

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