CFPB seeks to halt illegal auto repossessions by servicers

Huge demand for used cars has prompted the Consumer Financial Protection Bureau to warn about illegal repossessions by auto lenders and servicers.

The CFPB issued a compliance bulletin Monday describing ways in which auto repossessions violate the Dodd-Frank Act’s prohibition on engaging in unfair, deceptive or abusive acts or practices.

CFPB Director Rohit Chopra said the bureau is concerned that the spike in car prices, due partly to the global microchip shortage, could create incentives for servicers to illegally seize vehicles for their resale value.