Marketplace All-in-One A potential pullback in auto lender oversight
Oct 29, 2025
Henry Epp, a Marketplace reporter focused on consumer finance, discusses the alarming rise in subprime auto loan delinquencies and the potential rollback of federal oversight. He highlights recent bankruptcies in the auto lending sector and the dangers of reduced regulation. Savannah Peters reports on OpenAI's significant shift from a non-profit to a public benefit corporation, emphasizing the challenges this poses to AI safeguards. The conversation touches on investor appeal and the risks of profit-driven AI development.
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Federal Oversight Could Shrink Bigly
- The CFPB may sharply narrow which auto loans it supervises, potentially excluding many subprime loans from federal oversight.
- Experts warn pulling back comes as delinquencies and fraud in subprime auto lending are rising, increasing consumer risk.
Examinations Are Collaborative Fix-It Processes
- Loralee Salas describes CFPB examinations as collaborative, private processes that let companies fix violations before public enforcement.
- She says that the process tends to produce strong consumer outcomes, citing actions like stopping wrongful repossessions.
Lenders Call Supervision Duplicative
- Industry groups argue CFPB supervision duplicates state and FTC oversight and burdens small lenders.
- They say the CFPB only joined auto-lender supervision a decade ago and that older oversight was adequate.