Why Auto Lenders Suddenly Face More Legal Risk
Alan Wingfield, a partner in Troutman Pepper's Consumer Financial Services Practice Group, is quoted in the American Banker article, " Why Auto Lenders Suddenly Face More Legal Risk."
"This will be a source of work for lawyers, and bad news for finance companies," said Alan Wingfield, a partner at the law firm Troutman Pepper who represents auto lenders.
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Wingfield, the Troutman Pepper lawyer, said the FTC opinion "moved the needle," so he is advising auto lender clients to assess the increased risk they face from litigation.
Steps that lenders can take include reviewing their compliance programs and performing quality checks on the loans that auto dealers send them, as well as reviewing legal agreements with dealers to ensure there is an "appropriate allocation of risk," Wingfield said.
Despite the increased legal risk, Wingfield noted that the auto lending industry is currently booming, with loan originations soaring and delinquencies remaining at low levels.
"This is, in a way, the best time possible for a bank or a finance company to address this increased risk, because times are good," Wingfield said. "This is the time to do it."