What Capital One’s data breach means for auto finance

In the wake of Capital One Financial’s data breach, auto lenders should evaluate ways to tighten up cybersecurity and identify points of vulnerability. The breach compromised 140,000 Social Security Numbers, and 80,000 bank account numbers were made available, according to the bank’s response to the breach. However, the impact might be “somewhat contained,” said Brian Landau, senior vice president […]
  • Nicole Casperson
  • July 30, 2019
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House Financial Services Committee urges oversight of alt-data

The use of alternative data by lenders could expand access to credit to more than 40 million consumers. Likewise, banks and credit unions are using alternative data to fight fraud and provide faster access to funds. However, regulatory uncertainty surrounds the use of alternative data in making lending decisions, according to the U.S. House Committee on Financial Services’ Task Force on Financial Technology. […]
  • Nicole Casperson
  • July 25, 2019
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An inside look at 2 new credit scoring models

Ever since the concept of loaning money was conceived, lenders have been trying to find the ideal way to predict who will pay them back and who will default. Over time, methods for evaluating the likelihood of borrower repayment progressed from individual human judgment calls to more objective credit bureaus and reports. In the 1950s, […]
  • Mark Baltuska
  • July 18, 2019
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Why Finance Companies Are Using Verification Tools at Record Levels

Reading some of the headlines from major media outlets, it might seem as though auto finance companies didn’t understand the importance of verifying income and employment information provided by applicants. Everything was written from auto finance companies being fraudsters to the auto industry being the harbinger for the next recession. However, the headlines largely got […]
  • American Financial Services Association
  • October 1, 2018
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Lenders Will Require Larger Down Payments as Underwriting Tightens

Dealers and lenders have a lot of tricks at their disposal to keep monthly rates affordable for consumers. If the monthly bill is too high, just extend the term. If it’s still too high, perhaps the consumer would consider a certified pre-owned vehicle off-lease. If a new car is non-negotiable, there’s leasing. Or perhaps the […]
  • William Hoffman
  • April 6, 2018
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Part II: Alternative Data Drives Auto Lending Growth

Despite the potential benefits of alternative data, privacy concerns linger about how the data is collected and shared with lenders. Earlier this year, the Consumer Financial Protection Bureau (CFPB) announced that it is looking into privacy and security concerns surrounding the growing acceptance of alternative data and sought public comment on both issues. The CFPB’s […]
  • Debbie Hoffman
  • November 17, 2017
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Consumers Show Increased Appetite for ‘Cheap Finance,’ Report Finds

Since the downturn, the combination of attractive lease deals, pent-up consumer demand, and easy credit availability have pushed sales higher, according to an industry report by White Clarke Group released last week. Light-vehicle sales in the U.S. have delivered seven consecutive annual gains since the financial crash — marking the longest upwards streak in decades. […]
  • Natalie Mattila
  • October 10, 2017
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Three Reasons to Follow Up on Lost Sales

A typical lender receives anywhere from five to 20 loan applications for every one contract. Experts say, there is a lot of valuable information that can be obtained from tracking those lost transactions. How did those loans perform? Did they default? What competitor ended up booking that loan? “There is a great deal of information, […]
  • Diana Asatryan
  • September 2, 2015
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Tools for Helping Consumers with Their Credit Scores

A borrower’s deal often boils down to her credit score. This matters because lender marketing often hinges on that score, too. There’s an opportunity for auto lenders to be a more valuable resource to consumers who are seeking to better understand their credit scores and borrowing potential, even though few lenders think about credit score services […]
  • JJ Hornblass
  • July 30, 2014
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