The CFPB issued a compliance bulletin Monday describing ways in which auto repossessions violate the Dodd-Frank Act’s prohibition on engaging in unfair, deceptive or abusive acts or practices.
CFPB Director Rohit Chopra said the bureau is concerned that the spike in car prices, due partly to the global microchip shortage, could create incentives for servicers to illegally seize vehicles for their resale value.
“With today’s high car prices, auto lenders and investors might be tempted to seize vehicles for resale in the hot used car market,” Chopra said in a press release. “No American ever wants to wake up to see their car stolen. Auto loan servicers need to ensure that every repossession is lawful.”