John Redding Quoted in Auto Finance News Article, "Expect Changes in Distribution of Ally Settlement Funds"John C. Redding
John Redding was quoted in Diana Asatryn's Auto Finance News article, "Expect Changes in Distribution of Ally Settlement Funds," on January 25, 2016.
The House Financial Services Committee released a report Wednesday criticizing the Consumer Financial Protection Bureau’s process for issuing payouts to affected borrowers in Ally Financial Inc.’s disparate impact case.
“They are now concerned that the way funds are being distributed won’t compensate the members of protected classes, and some non-Hispanic white borrowers will receive the funds instead,” said John Redding, a partner at Buckley Sandler LLP.
The committee is calling to suspend the distribution of funds, and requesting that the bureau be called to testify before the House in early February, according to the report. In the meantime, consumers will probably continue to receive checks, Redding told AFN, in accordance with the CFPB’s current algorithm — the so-called BISG methodology, which identifies a person’s race by analyzing surnames and locations.
“But doing so may subject them [the CFPB] to further criticism from Congress,” he said. “As of right now, nothing’s stopping them from a legal perspective; it’s more about politics than anything else.”