NAFCU Statement on CFPB Indirect Auto Lending Bulletin
WASHINGTON – The National Association of Federal Credit Unions (NAFCU) President and CEO Fred Becker issued the following statement today regarding the Consumer Financial Protection Bureau’s guidance that potentially sets the stage for making indirect lenders, including credit unions, liable for fair lending violations by auto dealers.
“NAFCU, which has been a staunch advocate of fair lending, takes exception to this guidance that essentially treats the auto dealer as a third-party service provider of the credit union, increasing a credit union’s risk for liability and giving the CFPB a way to reach auto dealers in the absence of direct statutory authority.
“This implies that the CFPB will seek to hold credit unions accountable for others’ actions while also putting credit unions between auto dealers and the CFPB, which has not received direct supervisory authority over auto dealers under the Dodd-Frank Act.”
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.