In response to the CFPB’s new repossession “Best Practices”

CFPB issued Bulletin 2022-04 Mitigating Harm from Repossession of Automobiles

To The Repossession Industry:

Recently the CFPB issued Bulletin 2022-04: Mitigating Harm from Repossession of Automobiles. In response to this bulletin, some lenders are instituting what they call best practices to appease the CFPB when they are audited. Many of the “best practices” that have been implemented places the burden of responsibility on the Repossessor.

This practice of transferring CFPB financial responsibilities to the Repossessor is completely misguided & any additional cost to implement these new guidelines should ONLY be taken on by the Lender. The Lender may view this as a “consumer friendly” practice they can trot out to the Bureau during an examination or enforcement action, but this is not the way to execute that idea.

The lender needs to fix the broken game of telephone that goes on between their special assets department à forwarder (if they use one) à agent, which creates many wrongful repossession claims.

Here is the link to the CFPB 2022-04 bulletin

Any request from lenders in responses to the CFPB 2022-04 bulletin which ask you to be financially responsible for additional costs should be reviewed carefully with your attorney. Your Insurance Carrier will not pay fees for a best practice implemented by a Lender. That expense is coming directly out of your pocket.

Please reach out with any questions or if you want to be referred to an Attorney that specializes in our Industry.

Sincerely,