The Consumer Financial Protection Bureau has issued subpoenas to U.S. auto lenders over the sale of extended warranties and other financial products, according to people familiar with the investigation, expanding a civil probe that lenders say could slow the booming car-loan industry.
Any new restrictions could affect millions of Americans who use loans to buy new and used vehicles each year.
Add-on products, such as extra insurance, are a popular mechanism used by car dealers to boost profits.
Though such products are legal, regulators are probing whether terms and prices are adequately disclosed.
The CFPB has pursued a similar strategy with credit card companies, fining them over the use of deceptive marketing practices to sell products like identity-theft protection.
Story by Robin Sidel and Alan Zibel for the Wall Street Journal.
- Consumer Protection Bureau Hits the Ground Running
- Consumers Abused By Banks As Federal Protection Agency Still 6 Months Away
- Capital One Gets Nailed For $210 Million In Fines For Deceptive Marketing
- Looking For Credit? Lenders Will Probe Way Beyond Your Credit Score
- Federal Credit Card Complaint Database Made Public Starting Today
- Bank Consumer Traps & Tricks Continue Despite Congressional Financial “Reform”