November 20, 2019
F&I and Showroom publishes Tom Hudson's article on alleged auto finance abuses
On November 19, F&I and Showroom published, "Old Whine in a New Bottle," an article by Hudson Cook co-founder Tom Hudson which challenges a Georgetown University Law Professor's paper on alleged abuses in dealer vehicle financing.
First, Tom points out the distinction between credit sales and loans - a crucial piece to understanding the auto financing marketplace. Next, Tom examines the four abuses the law professor identifies in the article - current dealer financing transactions result in overcharges to consumers, dealer financing is "particularly susceptible to discriminatory pricing," dealers engage in payment packing, and dealers engage in "yo-yo scams." Tom notes that the professor's paper does not specify the frequency of these alleged abuses, and that the article provides no hard numbers to support the professor's claim that the identified abuses are common.
Tom is a founding partner of Hudson Cook, now Of Counsel to the firm, and has practiced consumer financial services law since 1973. He has focused his practice on matters relating to vehicle sales, financing and leasing, and his clients include captive foreign and domestic auto finance companies, major banks and independent finance companies, trade associations and companies who supply services to the auto finance and lease industry.
Click here to read Tom's article.