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Next CFPB target: F&I products?

September 27, 2013
F&I products may be the next target for the Consumer Financial Protection Bureau after dealer reserve, F&I administrator executives say. According to Automotive News, that could be critically important for dealerships.
The CFPB hinted strongly in consent orders this year that it would like to see more disclosures on pricing and coverage with regard to F&I products. “We’ve got to be on our toes. We’ve got to look how we’re training,” said Steve Amos, president of F&I product provider GSFSGroup, during a panel discussion at the Industry Summit in Las Vegas this month.
Amos and other executives at the conference said that F&I administrators need a campaign to educate regulators, such as the CFPB, about their industry. “They really don’t know our industry, and yet they are regulating our industry,” Amos said.
The F&I product industry has been on high alert since June when the CFPB ordered U.S. Bank and Dealers’ Financial Services, of Lexington, Ky., to refund a total of $6.5 million to military service members who got auto loans through Dealers’ Financial Services’ Military Installment Loans and Educational Services program.