Auto lenders and retailers are facing scrutiny by the Consumer Financial Protection Bureau over possible discrimination based on dealer finance rate markups and the sale of “back-end” products such as service contracts.

The National Automobile Dealers Association (NADA) estimates that nearly 75 percent of all new vehicles sold in the United States each year are financed or include “add-on products.”

Alan S. Kaplinsky, a Ballard Spahr attorney who represents financial services companies, said the CFPB has reportedly asked dozens of questions and requested data on auto lenders’ practices, including the sales of warranties and insurance.

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Consumer Financial Services