CFPB bolsters enforcement efforts by states

FOR IMMEDIATE RELEASE:

May 19, 2022

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that describes states’ authorities to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. Because of the crucial role states play in protecting consumers, the Consumer Financial Protection Act grants their consumer protection enforcers the authority to protect their citizens and otherwise pursue lawbreakers.

“In the years leading up to the financial crisis, federal regulators undermined states seeking to protect families and businesses from abuses in the mortgage market,” said CFPB Director Rohit Chopra. “Our action today demonstrates our commitment to promoting state enforcement, not suffocating it.”

When Congress passed the Consumer Financial Protection Act in 2010, it recognized the important role of states in protecting consumers from financial fraud, scams, and other wrongdoing. In the run-up to the Great Recession, federal banking regulators took numerous steps to undermine state regulators and enforcers, deteriorating protections for mortgage borrowers and setting the stage for the subprime crisis. Through the Consumer Financial Protection Act, Congress significantly restricted the ability of federal banking regulators to broadly preempt state consumer financial protections.

In addition, Congress sought to enhance states’ enforcement abilities, so states were empowered to enforce the Consumer Financial Protection Act’s consumer protection provisions. This authority was provided for both state attorneys general and state regulators. In the years since Congress granted this authority, states have used it in 33 public enforcement actions to protect consumers. States brought some of these actions in partnership with the CFPB, while others were brought by individual states or multistate groups that have included almost every state and territory in the country.

These actions are in addition to other collaboration and cooperation efforts among the CFPB and states. The CFPB has memoranda of understanding to promote and enable these efforts with over 20 state attorney general offices, as well as regulators in all fifty states, the District of Columbia, and Puerto Rico.

Today’s interpretive rule affirms:
•    States can enforce the Consumer Financial Protection Act, including the provision making it unlawful for covered persons or service providers to violate any provision of federal consumer financial protection law. This provision covers the Consumer Financial Protection Act itself as well as its 18 enumerated consumer laws and certain other laws, along with any rule or order prescribed by the CFPB under the Consumer Financial Protection Act, an enumerated consumer law, or pursuant to certain other authorities.  
•    States can pursue claims and actions against a broad range of entities. The Consumer Financial Protection Act outlines entities over which the CFPB may exercise its enforcement authority under the statute. States are able to bring actions against a broader cross-section of companies and individuals.  
•    CFPB enforcement actions do not put a halt to state actions. Sometimes states bring enforcement actions in coordination with the CFPB. A state may also bring an enforcement action to stop or remediate harm that is not addressed by a CFPB enforcement action against the same entity. Nothing in the Consumer Financial Protection Act precludes these complementary enforcement activities that serve to protect consumers at both the national and state levels.

Today’s announcement is part of the CFPB’s expansion of its efforts to support state enforcement activity. The CFPB plans to consider other steps to promote state enforcement of federal consumer financial protection law, including ways to facilitate victim redress.

Read the interpretive rule.

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The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit consumerfinance.gov

 

 

 

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PrivateAuto: The first self-service payment app for private vehicle sales

ALPINE, Utah, May 18, 2022 (GLOBE NEWSWIRE) — PrivateAuto is the first self-service, peer-to-peer payment app for private vehicle sales that allows users to verify a driver’s license, eSign the bill of sale, and instantly transfer funds anytime, anyplace. The web app is now live and available nationwide.
PrivateAuto’s transactional marketplace is the only one of its kind, incorporating unique listing options, integrated banking features, and automated workflows to provide users with a complete listing to payment solution.

Some of the app’s features include driver license verification with facial recognition technology, a test drive scheduler, accept/reject/counter offer functionality, eSignable bill of sale, and integrated vehicle financing options. Users can even generate unique window-sticker QR codes for their vehicles and advertise without sharing personal contact information.

In a YouTube video released on April 1, 2022, the CEO of PrivateAuto completed what was once impossible: Using the PrivateAuto app, he purchased a Porsche 911, Carrera, transferring over $100,000 in the parking lot. While most payment apps allow users to transfer up to $5,000, PrivateAuto is the first fintech solution to provide instant and secure payment processing for private party vehicle transactions over $5,000.

Before PrivateAuto, buyers had to gamble with their safety, carrying thousands of dollars in cash to meet with strangers, and sellers had to worry about whether they would receive payment before releasing their vehicle. Today, those fears are a thing of the past, as buyers and sellers now have access to instant, high-volume transactions through PrivateAuto’s safe, simple, and secure app.

“For decades, the private sale has been a clunky and awkward experience for many people. We are proud to be the first true fintech for the private sale allowing two users to safely transact on their terms and not rely on a third party. Our journey is just beginning as we introduce dealer-like services to the private sale without the added cost or hassle,” said Brad Parker, Founder and CEO of PrivateAuto.

For more information about PrivateAuto, the world’s first all-in-one private car selling solution, visit privateauto.com. The web app is available now, and the downloadable version will be on the App Store in the summer of 2022.

About PrivateAuto

PrivateAuto is the easiest way to list, meet, and get paid when selling vehicles privately. The only technology-driven, self-service solution to close the deal on your own.
 

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DriveCentric and CUDL announce new integration for the CUDL auto lending platform

St. Louis, MO | May 12, 2022 – DriveCentric is excited to announce its integration and partnership with CUDL, the nation’s largest credit union financing network, providing a more simplified and streamlined credit application and financing process for today’s customer-focused dealerships.

The new integration not only allows dealers to tap into CUDL’s credit union network — which, collectively, represents one of the industry’s top auto finance sources — it creates a seamless workflow within DriveCentric’s CRM that streamlines the credit application process for dealers and ultimately improves the experience for their customers.

This integration allows DriveCentric dealership partners to connect with the nation’s largest network of over 1,100 local and national credit union lenders and their 64+ million members. The CUDL auto lending network helped credit unions fund a record $46.9 billion in auto loans in 2021, while CUDL credit unions, as an aggregate, were the largest auto lender in the nation in 2021, experiencing 13 percent loan growth over 2020.

“The landscape of lending is evolving, and we recognize the value and need for delivering a simplified, streamlined application process for dealers and their customers,” said Marty Simons, CUDL Product Director.  “We’re excited to join forces with DriveCentric to provide dealers with the ability to easily send deals to credit unions, paving the way for an improved customer experience.”

Both DriveCentric and CUDL are focused on delivering solutions their users find valuable and efficient. Through the CUDL network, connecting with credit union financing is a simple and seamless experience for dealerships and their customers. It’s a human-centric approach perfectly paired with new-school technology to optimize the vehicle financing and buying journey.

“At DriveCentric, we know that time equals money for our dealer partners. The integration with CUDL will allow our mutual dealer partners to provide their customers with a more streamlined experience that will ultimately lead to a more efficient sales process. We are very excited for dealers and consumers to reap the benefits of this partnership,” says Drew Adler, Director of Operations, at DriveCentric.

Current CUDL dealers are invited to reach out to their CUDL dealer experience representatives to start the process of enabling the integration today. Current DriveCentric dealers who do not use CUDL, but would like to, can learn more about CUDL’s full suite of solutions at CUDL.com.

 

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Auto fintech Caribou raises $115 million in Series C funding, valuing company at $1.1 billion

May 20, 2022 07:00 ET | Source: Caribou
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WASHINGTON, May 20, 2022 (GLOBE NEWSWIRE) — Caribou, the auto fintech whose mission is to help people take control of their car payments, today announced it has closed $115 million in an oversubscribed Series C funding round, which brings the company’s valuation to $1.1 billion. The round was led by Goldman Sachs Asset Management (Goldman Sachs), with participation from new investors, including Innovius Capital and Harmonic, as well as existing investors, including Accomplice, CMFG Ventures, Curql Fund, Firebolt Ventures, Gaingels, Moderne Ventures, Motley Fool Ventures and others.

Auto lending is the fastest growing consumer credit market in the U.S., with total auto debt having doubled to roughly $1.5 trillion in little more than 10 years. With the cost of car ownership soaring, Caribou is providing consumers with much-needed financial relief, saving its customers on average more than $100 a month on their auto loan through refinancing. The company is expanding its services across the auto financial landscape, recently launching its digital car insurance marketplace.

“We are putting people in control of their auto finances, saving them thousands of dollars with a fast and easy process,” said Caribou CEO Kevin Bennett. “We’re proud of what we are building and grateful to have such a talented team and experienced group of investors backing our vision. We are just getting started.”

Founded in 2016, Caribou (formerly MotoRefi) has rapidly grown its core auto refinancing offering by connecting car owners with lenders from credit unions, community banks and other trusted financial institutions. Caribou now also provides a quick and easy way to shop and compare car insurance from trusted national carriers in minutes with its new car insurance marketplace. By combining technology with expert lending and insurance teams, Caribou is prioritizing transparency and trust in the car ownership experience.

Since closing its first auto loan for customers a little over four years ago, Caribou has refinanced more than $1.5 billion in loans, saving its customers over $100 million in total interest over the lifetime of their loans. The company has simultaneously scaled its business operations across Washington D.C. and Denver, as well as remotely, building a 500-person workforce, up from roughly 40 employees two years ago.

The Series C funding round will help Caribou to continue its strong growth trajectory by investing in its platform, innovative new products and continuing to expand the team.

“Caribou is building an important company with a great culture that helps consumers and lenders in an enormous market. That’s why we’re thrilled to be doubling down on our initial investment by leading Caribou’s Series C funding round,” said Jade Mandel, Vice President within the Growth Equity business within Goldman Sachs Asset Management and a member of Caribou’s Board of Directors. “In a few short years, Caribou has established itself as the industry leader in auto fintech, already having saved customers more than $100 million on their car payments. We’re excited about the launch of its digital insurance marketplace and we can’t wait for what’s next.”

“We couldn’t be more excited to join Caribou on its mission to put consumers in control of their car payments,” said Justin Moore, CEO of Innovius Capital. “With the costs of car ownership soaring, and macroeconomic headwinds negatively impacting people’s finances, we believe that it’s more important than ever to help people save money. Caribou has established itself as the go-to platform to refinance their auto loan and we are excited for all that is to come.”

Caribou’s Series C round builds on a successful $50 million Series B that closed in May 2021, which was also led by Goldman Sachs. The Series C round brings the total funding Caribou has raised to more than $190 million since the company’s founding in 2016.

 

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