In the wake of COVID-19, the CFPB has shifted over half of its supervisory activities to “Prioritized Assessments” (PAs). PAs were designed to obtain real-time information to analyze pandemic-related market developments to determine which markets were most likely to pose risk to consumers. Auto loan servicing was the first target of their Summer 2021 Supervisory Highlights report. In this recent issue, the agency has identified several unfair acts or practices related to Lender-Placed Collateral Protection Insurance.
Charles Kettering liked to say, “People are very open-minded about new things, as long as they're exactly like the old ones.”
As an American innovator (inventor of the cash register and the electric starter for automobiles), he lived each day to rethink the way things were done. The daily musings of our team here at Unitas aren’t much different. Insurance is our world. It is important, but it shouldn’t take time away from the essential, impactful work that our community lenders are focused on each day. However, as we expand our presence across the country, we’re shocked to discover just how many lenders have insurance programs that are actually slowing them down.