US consumer watchdog may expand oversight to more auto lenders

The US consumer financial protection agency is considering changing how it defines "larger participants" in the auto lending market. This could bring more auto loan companies under federal supervision for the first time.

Currently, only the largest auto lenders are directly supervised by the Consumer Financial Protection Bureau. If the definition expands, many more companies that offer car loans would face federal scrutiny. This means more lenders would have to follow federal consumer protection rules, and the agency could investigate them for unfair practices.