January 3, 2019
Partners Michael Benoit and Eric Johnson share regulatory predictions for auto lenders in 2019 on Compli blog
On January 3, Compli, an HR and compliance software company, published auto lending regulation predictions for 2019 from Partners Michael Benoit and Eric Johnson on their Smart Compliance Blog. Both Michael and Eric agreed that Kathy Kraninger, the new CFPB director, will likely be a more aggressive director than the industry would like.
According to Michael, "Mick Mulvaney's attempts to sideline the CFPB's Office of Fair Lending by pulling it into the director's office and eliminating its substantive functions will be undone. This doesn't necessarily mean that disparate impact enforcement in auto finance will come roaring back, but it will make it more likely."
Eric predicts that the FTC will be more aggressive in 2019. "I expect we'll see continued compliance sweeps (they'll be back!) and enforcement activity from the FTC on dealer print, TV, radio ads and YouTube ads that use "mouse type" or birdseed type disclosures," said Eric.
Michael is chairman of Hudson Cook, LLP and a partner in the firm's Washington, D.C. office. He advises banks, sales finance companies, auto dealers, leasing companies, mortgage lenders, and other creditors and technology providers on a wide range of consumer financial services law, and provides federal legislative and regulatory advice and support to financial services trade associations. Michael assists CFPB-regulated clients in preparing for supervisory exams, and represents clients in investigation and enforcement matters involving the Federal Trade Commission and the Consumer Financial Protection Bureau.
Eric is a partner in the firm's Oklahoma office. He assists national and state banks, savings associations, credit unions, mortgage bankers, other licensed lenders, motor vehicles dealers and automotive finance companies in the development and maintenance of nationwide consumer mortgage and automobile finance programs; online motor vehicle sales programs; litigation funding programs; and electronic payment programs.
Click here to read Compli's Smart Compliance Blog and download all of the 2019 predictions for dealers.