John C. Redding was Quoted in Auto Finance News Article, “CFPB Title Lending Rule to Limit Subprime Risk”
Auto Finance NewsJohn C. Redding
John C. Redding was quoted on October 19, 2017 in an Auto Finance News article, “CFPB Title Lending Rule to Limit Subprime Risk,” which discussed the CFPB’s recent lending rule and the impact it will have on subprime borrowers seeking a vehicle title loan. The article noted, “When consumers seek loans outside of their traditional bank, they might resort to putting their vehicle up as collateral against the loan, which is known as title lending. However, there are instances where that consumer still owes money to an auto lender for an existing loan on the vehicle. The CFPB's rule makes it so that vehicle title lenders with terms of 45 days or less must prove the borrower has an ability to repay.”
Redding added, “The enhanced ability to repay analysis is going to have to take into account the payment for any other lien on the vehicle. Therefore, to the extent that was not being considered prior to the rule, upon the effective date [summer 2019], it will become one of the factors taken into account and that could result in potentially less credit being extended to consumers who are seeking title loans where the vehicle has another lien against it.”
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