Tag Archives: Equal Credit Opportunity Act

CFPB to Auto Dealerships: Remember Consumer Rights

At Approved Loan Store, we believe it is important for every consumer to understand their rights, particularly when it comes to auto loans, and we want to commend the Consumer Financial Protection Bureau (CFPB) for reiterating those rights to dealerships and the general public this week.

Under the Equal Credit Opportunity Act, lenders cannot discriminate or alter the terms of a loan based on race, color, religion, national origin, sex, marital status, or age. A person cannot be charged a higher interest rate if they are old or young, black or white, married or single, or a person with or without religious affiliations. The CFPB is helping people to understand their rights and issuing instructions on legal recourse if a consumer is the victim of discriminatory practices. CFPB Director Richard Cordray stated emphatically this week that, “Consumers should not have to pay more for a car loan simply based on their race,” and we at Approved Loan Store couldn’t agree more.

Right here is one of the reasons why our customers love Approved Loan Store. We work for you to get the best terms possible on a new or used car, and our special finance representatives are educated on all the latest consumer protection laws so they can look out for your best interests. Our process makes it buying a car more simple and enjoyable.

Are you ready to get into a new or used car today? Approved Loan Store is ready to help YOU! Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, check out Approved Loan Store on Facebook, Twitter, and YouTube!

Cordray, CFPB Tackle Discriminatory Lending

The Consumer Financial Protection Bureau is still getting its feet wet seeing as how the President just assigned Richard Cordray to the agency a few months ago. That doesn’t mean they don’t want to hit the ground running, though.

According to the the Chicago Tribune, Cordray mentioned discriminatory lenders in a recent speech and warned that they would be the first to really see the force of the new agency. “The Consumer Bureau is still in its infancy, but we will not be silent on discriminatory lending practices. Our twin goals here are to protect consumers and empower them to be able to protect themselves.”

The CFPB plans to monitor the financial institutions for potential lending violations. This will be regarding all forms of consumer credit including auto loans, credit cards, and student loans. According to the Equal Credit Opportunity Act, lenders are barred from basing credit decisions on race, color, religion, sex, or marital status. The CFPB will also be looking for disparate impact in lending in which lending practices aren’t discriminatory themselves but have discriminatory effects. Cordray also touched on this goal in his speech, stating, “This subtle but powerful form of discrimination creates damages that are no less direct than the kind of overt and blatant discrimination that, we hope and assume, is increasingly a relic of a bygone era.

To better illustrate the impact that these practices can have, the Chicago Tribune article highlights the disparity in African-American households. On average, the median wealth dropped more than 50 percent in the years 2005 and 2009. Hispanics saw even worse results, losing 66 percent in their wealth. This has not stopped the discriminatory lending from targeting these groups, however.

The CFPB looks to be a powerful force in aiding the consumer in a time where everyone is looking to take advantage of them. One of the key tools they plan on using is education. They want to make sure that everyone has the right knowledge to keep from being victims. “Whether they are applying for an auto loan, student loan, or home loan, consumers need to know their rights and they need to know what red flags to look for that may indicate their rights are being violated,” Cordray said. “We want consumers to be able to recognize when they may be victims of discrimination.”

Approved Loan Store is the honest way to get approval for a car loan, even if you’re suffering from bad credit. Fill out an application to see the process work for you and see why so many have proclaimed their love for the services ALS provides. Be sure to like us on Facebook and follow us on Twitter so we can keep you educated on industry news.