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Law firm Maurice Blackburn recently settled a class action with ANZ over allegedly unlawful "flex commissions" in car loans made by Esanda between 2011 and 2016. ANZ settled for $85 million without admitting liability, but two other class actions against Westpac & St George and Macquarie Leasing are still ongoing. Flex commissions allowed car dealers to set interest rates on car loans above a base rate, resulting in higher commissions for dealers but potentially unfair rates for borrowers. Class actions are becoming more common as a way for consumers to seek justice, especially when individual action is difficult or expensive. The recent ban on flex commissions by ASIC and a High Court ruling on "systemic unconscionable conduct" may lead to increased scrutiny of corporations and stronger consumer protection. [Extracted from the article]

A sense of unease hung over the British Motor Museum in Warwickshire last month, where classic cars and cinematic icons gave way to rooms filled with anxious lawyers, bankers, and [...]

KBRA reported it has released its European Auto ABS Indices: October 2024, providing monthly credit trends across securitized prime and non-prime auto loans. KBRA is a full-service credit rating agency [...]

Byline: Adgully Bureau In India, owning a car is no longer a luxury but a necessity. With the rising cost of new cars, many people are turning to the second-hand [...]

Car and personal loans BEST-VALUE CAR LOANS – CUSTOMER-OWNED BANKS GOLD WINNER GREATER BANK Don't be afraid to walk away to make sure you get the best deal. It really [...]

Car and personal loans BEST-VALUE CAR LOANS – BOUTIQUE BANKS GOLD WINNER RACQ A lower interest rate and minimal fees make buying a car an easier exercise. A loan with [...]

ON THE COVER Welcome to the Best of the Best. READ UP on the best-value bank accounts, super funds, insurance, share brokers, green, personal and car loans as well as [...]

The brewing controversy over mis-sold car loans has forced Santander UK to set aside £295 million to potentially compensate aggrieved motor finance customers. The bank joins a small but growing [...]

IN THIS ISSUE / CITY Companies in the news …and how they were assessed Lloyds/Close Brothers/Santander: car trouble “The tide has turned for UK banks”, whose shares are now “racing [...]

Wells Fargo raised the firm's price target on Associated Banc-Corp to $24 from $22 and keeps an Equal Weight rating on the shares. The firm notes both sides of the [...]

Byline: Adgully Bureau While consumers often find joy in making measurable lifestyle upgrades during the festive season, the prospect of taking a loan can sometimes weigh on their minds. To [...]

Open Lending Corp., a company focusing on automotive lending enablement and risk analytics solutions for financial institutions, reported a partnership with Point Predictive, experts in predictive science. Designed to bring [...]

Byline: Ann Carrns The Consumer Financial Protection Bureau suggests that lenders may be overzealous in repossessing cars. To access, purchase, authenticate, or subscribe to the full-text of this article, please [...]

The article "Trends in household debt: Types of debt, recent patterns, and what the data suggest" discusses the increase in household debt in Alaska since 2003. Factors contributing to this rise include higher mortgage payments, increased auto loan and credit card debt, and higher incomes. However, the amount of debt alone does not indicate how well households are managing their debts. While delinquency rates for mortgage and auto loan payments are low, credit card delinquency reached its highest point in 2023. Student loan debt delinquency rates dropped during the pandemic due to payment suspensions, but the impact of resuming loan repayment is uncertain. Alaska households had an average debt of $68,780 per person in 2023, with mortgages being the largest portion. It is important to note that per capita data includes everyone, not just those with specific types of debt. Overall, Alaska households seem to be managing their debt effectively, but credit card delinquency rates and the resumption of student loan repayment are areas of concern. For more information, readers can contact economist Rob Kreiger in Juneau. [Extracted from the article]

After a rough first quarter, CarMax saw its net income surge in the second quarter despite a slight slowdown in sales revenue. The behemoth used-car retailer also boosted the amount [...]

Reports Q2 revenue $7.01B, consensus $6.79B. 'We are pleased with the continued improvement of the business in the second quarter, which reflects the positive impact of our durable actions to [...]

Byline: Moneylife Digital Team Holding HDFC Bank Ltd responsible for deficiency in service by keeping a hold on funds of a customer's savings account that resulted in bouncing his instalment [...]

Reports Q2 revenue $26.7M, consensus $31.03M. 'For the second quarter of 2024 we were near or above the high end of our guidance range across certified loans, revenue, and Adjusted [...]

The Classic Car Loan Project, which offers young drivers the unique chance to live with a classic car for a whole year, has now seen a milestone 100 drivers borrow [...]

U.S. household debt climbed another $109 B in Q2 to hit $17.8 tln, according to the NY Fed. Increases were posted across the various components. Consumers continue to use credit [...]

Needham downgraded Open Lending to Hold from Buy without a price target. The auto lending market remains choppy, and could see further disruptions due to ongoing auto credit concerns, falling [...]

The Eighth Circuit upheld sanctions against a defendant in a Fair Credit Reporting Act (FCRA) lawsuit for demanding irrelevant information in discovery, resulting in $93,243.50 in attorneys' fees. The case arose from a consumer couple's dispute with a credit reporting agency (CRA) over erroneous reporting of an auto loan. The court cautioned against overly broad discovery requests and emphasized the importance of relevance in such cases, highlighting the risks of expansive tactics in FCRA lawsuits. [Extracted from the article]

The article discusses the Consumer Financial Protection Bureau's (CFPB) Spring 2024 Supervisory Highlights report, which focuses on findings from examinations of auto and student loan servicing companies, as well as debt collectors. The report highlights deficiencies in the practices of loan servicers, such as failing to notify borrowers about manual final payments, and deceptive practices by debt collectors in violation of the Fair Debt Collection Practices Act. It also mentions issues with communication about account freezes and consumer complaints related to medical credit card marketing. [Extracted from the article]

The article discusses strategies for borrowers to lower the cost of their debts in an era of higher interest rates. The Federal Reserve has raised interest rates multiple times since March 2022, which has made debt more expensive for borrowers. However, there are still opportunities to reduce interest rates on debts, such as credit cards, car loans, and student loans. The article provides tips for paying off high-interest credit card debt, finding low-rate options for car loans, and reassessing payment options for student loans. Additionally, it suggests discussing options with lenders for variable-rate home equity lines of credit and considering alternative ways to use the funds. [Extracted from the article]

Byline: Autocar Pro News Desk Each of the channel financing options offered, carry the benefits of customisation, flexible repayment tenure options and competitive interest rates. JSW MG Motor India has [...]

At the Morgan Stanley U.S. Financials Conference, PNC Financial CFO Robert Reilly said the company expects expenses to be flat for fiscal 2024. Reilly added that commercial real estate is [...]

UPFRONT Leaving a home at frame stage is a terrible idea Bec has been caught out by a builder's insolvency. Q I find myself in a challenging situation after a [...]

FEATURES CLASSIC CAR LOAN SUCCESS The Classic Car Loan Project has enjoyed yet another success, with the most recent custodians of the CCLP's Riley Elf having now bought their own [...]

The Consumer Financial Protection Bureau (CFPB) recently published its Semi-Annual Report to Congress, detailing its activities from October 2022 to March 2023. CFPB Director Rohit Chopra testified before the House Financial Services Committee and the Senate Banking Committee, discussing the state of the consumer financial services marketplace. He highlighted high levels of consumer debt, particularly in credit card and auto lending markets. Director Chopra also mentioned the Bureau's proposed rule to implement Dodd-Frank Section 1033, efforts to address "junk fees," and the Bureau's supervision and enforcement efforts, which have resulted in $8 billion in penalties and redress. He also expressed concerns about the role of artificial intelligence in financial services. [Extracted from the article]

In This Issue / City view City talk ● Close Brothers is “more vulnerable than most” to the Financial Conduct Authority’s crackdown on potential mis-selling of car loans, says Alistair [...]

Byline: Ann Carrns It has become harder for some borrowers to get affordable car loans as banks and dealerships face a rising number of delinquencies. To access, purchase, authenticate, or [...]

The Classic Car Loan Project has enjoyed yet another success, with the most recent custodian of the CCLP’s Riley Elf having now bought their own classic to enjoy. Emma Merryweather [...]

The Federal Reserve's decision to lower interest rates has raised hopes for additional cuts as inflation slows. While some sectors, like real estate and the car market, have already felt the impact of lower rates, it may take longer for the benefits to reach the whole economy. The neutral policy rate, which is the level at which interest rates neither stimulate nor hinder the economy, is believed to be lower than the current benchmark rate, indicating that further rate cuts may be necessary. The housing market has seen a boost, with mortgage rates at two-year lows and increased interest in buying homes. However, consumer sentiment regarding homebuying conditions remains negative. The car market has also responded positively to rate changes, with lower rates encouraging more people to buy cars. Small businesses have been negatively affected by high rates, and optimism in the sector has declined. While retail sales have unexpectedly risen, there is evidence of some consumers struggling to repay loans. The Federal Reserve has indicated that interest rates will be lowered over time, but there is no predetermined course. It is important for the Fed to follow through on rate cuts to prevent rates from increasing again and to avoid potential stock market corrections. [Extracted from the article]

The article discusses the financial situation of a divorced, single father named Andrew. He owns a residence worth $1,050,000 with a mortgage of $384,000 and recently purchased an investment property worth $400,000 with a mortgage of $350,000. Andrew earns about $120,000 per year and has insurances to cover his expenses and assist his children. He has $400,000 in superannuation and a small shareholding in a self-managed super fund. Andrew also has $30,000 in an offset account, $10,000 in direct shares and exchange traded funds, and a $1,000 credit card debt. He is considering upgrading his car and seeks advice on the best method to do so. Additionally, Andrew wants to know if his current savings and investments will allow him to retire in 20 years with an annual drawdown of $100,000. The author commends Andrew on his financial position and suggests running projections to determine if his current actions will meet his retirement goal. Based on the analysis, it is likely that Andrew will have $100,000 a year in 20 years, and he is advised to continue his current financial strategy. The author also discusses the option of purchasing a new car, acknowledging that while cars are not good investments, Andrew's financial situation allows for it. The author suggests considering a novated lease or using an offset account and potentially adding to the mortgage to finance the car. Overall, the article provides financial [Extracted from the article]

And while a number of cars have come and gone, the one street machine that has steadfastly remained is Janet's beloved 1966 Mustang. Throughout their journey, Janet and Victor have remained diehard hot-car fans. JANET Hough and Victor Reilly own and run Bucket Panels in Moorabbin, and have been together for over 43 years. [Extracted from the article]

Byline: Moneylife Digital Team While upholding orders passed by fora below, the national consumer disputes redressal commission (NCDRC) directed ICICI Bank Ltd to pay Rs55,177 with an interest of 8%pa [...]

Byline: John Huetter Fewer new- and used-vehicle deals involve a trade-in underwater on an auto loan compared with pre-pandemic 2019. But the degree of negative equity in those trade-ins has [...]

In an era where over 100 million Americans are tethered to car loans that total some $1.6 trillion in debt, the spotlight on the auto finance industry has intensified. This [...]

For the first time in the history of Used Car Week, the workshops and panel discussions focused on repossessions were some of the highest-attended portions of the entire event, which [...]

The Consumer Financial Protection Bureau (CFPB) made serious allegations against Toyota Motor Credit Corp., and ordered the captive on Monday to pay $60 million in consumer redress and penalties. The [...]

Chris Hoffman, a first-generation farmer, has become an industry leader in agriculture. Starting with limited resources, he built his hog operation, Lazy Hog Farms, into a successful business. Hoffman has diversified his farm, raising 1,200 sows, over 30,000 weaned pigs, and 4,000 finishing hogs, as well as operating a 45,000-head chicken operation. He is actively involved in the community and serves as the president of the Pennsylvania Farm Bureau. Despite the challenges of being an independent producer, Hoffman finds fulfillment in his work and enjoys working alongside his son. [Extracted from the article]

Most likely, it makes sense to focus on paying down credit card debt before, say, your car loan or student loans, which probably carry lower rates (but continue making at least the minimum payment on your other debts). And interest rates on credit cards are typically in the double digits, recently averaging more than 18% on accounts that assess interest, according to the Fed. Personal-finance site Wal-letHub estimates that people with credit card debt are spending an additional $25.6 billion in interest in 2022 as a result of rate hikes (for more, see "New Year's Resolution: Pay Down Your Credit Card Debt", on page 14). "Paying down expensive credit card debt is always a good idea, but it is probably better to conserve cash by not paying down longer-term debt like mortgages and student loans any more than needed to stay current." Most credit cards come with a variable rate, so each time the Fed boosts its benchmark rate, the rate you pay on your card balance goes up, too. [Extracted from the article]

Toyota RAV4 $20,000-$25,000 SMALL CAR Toyota Corolla 2018-20 The Corolla's rear seat rivals that of some midsized sedans, but the car returns a frugal 32 mpg overall. In our tests the powerful V6 engine returned 21 mpg overall, while the hybrid got 26 mpg, which is impressive for a midsized SUV. The Prius proves that you don't have to give up space or ride comfort to get stellar gas mileage - its 44 mpg overall is excellent. [Extracted from the article]

The article from Money (Australia Edition) provides a comprehensive guide to the best-value financial products and services, including bank accounts, super funds, insurance, share brokers, loans, and telco plans. It emphasizes the importance of making bold and smart financial decisions for success. The publication highlights the winners in various categories, such as the Super Fund of the Year award going to Mine Super, and encourages readers to take action to improve their financial situation. Additionally, it announces a dedicated insurance awards issue for 2025. [Extracted from the article]

Perella Weinberg Partners Capital Management LP, along with Innovatus Capital Partners, is considering selling Flagship Credit Acceptance LLC, an auto-finance provider that could potentially be valued at around $400 million. Flagship Credit helps non-prime auto shoppers secure financing and was created through a merger with CarFinance Capital in 2014. Other Wall Street firms have also shown interest in auto loans, such as KKR & Co. and Warburg Pincus. No final decisions have been made regarding the potential sale of Flagship Credit. [Extracted from the article]

The UK's Financial Conduct Authority is considering extending the deadline for banks to respond to customer complaints about fixed commissions on auto loans, as it expands its investigation into the issue. Recent lawsuits involving Close Brothers Group Plc and FirstRand Ltd. have brought attention to the practice of discretionary and non-discretionary commission arrangements in the car finance market. The FCA is seeking feedback on proposals to give lenders more time to address complaints related to these arrangements, with potential financial implications for the industry. Lenders like Lloyds Banking Group Plc and Close Brothers are already making provisions for possible compensation costs, as analysts predict the total industry cost could reach £30 billion. [Extracted from the article]

Banco Santander SA is looking to sell over a dozen significant risk transfers (SRTs) to enhance profitability. These SRTs are linked to more than €20 billion of loans from various global operations, including the US, Germany, the UK, and Mexico. By utilizing SRTs, asset sales, and other hedging transactions, Santander aims to free up capital and improve returns, ultimately reshaping the bank's business model. The bank's new approach has led to a boost in its Common Equity Tier 1 ratio, with SRTs playing a key role in this capital management strategy. [Extracted from the article]

Santander's UK unit has allocated £295 million to cover potential legal costs and payments following a UK probe into the suspected mis-selling of car loans. The bank delayed the publication of third-quarter earnings to assess the impact of the investigation, which resulted in a decline in profit before tax. Despite the provision, Santander stated that the impact on the group as a whole would not be significant, with the CFO affirming that the bank would meet its targets for the year. [Extracted from the article]

Banco Santander SA's UK unit is allocating £295 million to cover potential legal costs and payments related to a car loans probe. The amount is intended to address operational and legal expenses, with the possibility of the final financial impact being significantly different. Santander delayed the release of third-quarter earnings in response to the probe, which was prompted by concerns about transparency in car loan agreements. [Extracted from the article]