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Who is going to help with your complaint about an auto or installment loan?

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We recently launched the first phase of a new system to help consumers who have problems with auto loans and other types of installment loans, such as loans to buy a refrigerator. Just like the credit card and mortgage complaints within our purview we started taking last year, we will forward complaints for these new products to the appropriate financial institution for review and resolution.

Currently, we are handling complaints about vehicle loans and installment loans with large banks. If a complaint is against a large bank, we will handle it directly. If however a complaint involves a small bank or a nonbank, we will refer it to another federal agency with the authority to handle it. If this happens, we will immediately notify the consumer and identify which agency the complaint was referred to. Over time we will expand our complaint handling functionality to include nonbank auto lenders in order to more directly assist consumers with these complaints.

  • Tbhudson

    I offer this comment because part of the Bureau’s mission is consumer education.  The announcement refers to “auto loans and other types of installment loans.”  In fact, a great deal of the credit extended to buy autos and other consumer goods is not in the form of loans.  Instead, much of this financing occurs when sellers sell autos and other goods on credit.  These transactions are not loans, but are “credit sales.”  Credit sales and loans are subject to different state and federal laws; indeed, even the Bureau’s own regulations treat the two types of transactions differently.  Because consumers’ obligations and creditors’ responsibilities differ differ depending on whether the transaction is a loan or an installment sale, consumers need to understand the differences between these similar sorts of credit.  The Bureau’s pronouncements would be a good place to start this educational process.

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