Abusive Acts in Auto Lending “GAP” Add-Ons
The CFPB's recently released Supervisory Highlights shines the spotlight on areas of recent regulatory concern. The first item highlighted in the most recent issue concerns auto lenders who sell a "gap" product to consumers whose low loan-to-value ratio meant they would not benefit from the product. A gap product is designed to cover the difference between what a car is worth and how much is still owed if a car is totaled. Look for additional scrutiny in this area and other areas addressed within the report. [9/18/19]
