Auto Dealers, Lenders Prepare for CFPB Scrutiny
Auto lenders and dealerships are strengthening their compliance staffs as the Consumer Financial Protection Bureau (CFPB) cracks down on lending practices. Automotive News reported that lenders are beefing up to monitor dealerships more closely and dealerships are gearing up to face the added scrutiny.
“Staffing levels are definitely up” for lenders, said Andy Barksdale, managing director for TruPoint Partners, during a webinar last week hosted by Royal Media Group. TruPoint is a consulting firm in Charlotte, N.C., that works with financial institutions in compliance.
Meanwhile, dealerships are debating whether to add more positions or pile more responsibilities on staffers who are already accountable for compliance, said Paul Metrey, chief regulatory counsel for financial services, privacy and tax at the National Automobile Dealers Association (NADA).
“Certainly compliance is going to require much more time and attention on the part of management,” he said in a phone interview on Monday. “Whether that means they need to take on additional personnel is up to them.”
Metrey said dealership staffs already keep up with a long list of compliance requirements, such as the Red Flags Rule, which is aimed at eliminating identify theft.
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