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CFPB Issues Fair Lending Guidance for Indirect Auto Lenders – IBA Compliance Connection

CFPB Issues Fair Lending Guidance for Indirect Auto Lenders

Top17The Consumer Financial Protection Bureau has released a bulletin and fact sheet warning that indirect auto lenders could be held responsible for discriminatory pricing imposed on borrowers by car dealerships when lenders have reasonable notice of a dealership's discriminatory policies or conduct. The bulletin reinforces that the Equal Credit Opportunity Act (ECOA) applies to indirect auto lending and provides guidance on minimizing this fair lending risk.