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A rule placing "larger participant" nonbank auto lenders – ostensibly, this could include credit union service organizations – kicks in Monday, and legal experts cited in Automotive News are counseling dealers to take note as well of related fair lending issues.

The rule allows CFPB to examine nonbank financial companies that originate at least 10,000 auto loans or leases a year. Automotive News (subscription required) reported that there are 34 nonbank auto lenders in that group, which generate about 90 percent of nonbank auto loans and leases.

CFPB does not have authority over auto dealers, but this rule is expected to affect them given their lender relationships. Randy Henrick, associate general counsel for Dealertrack, told Automotive News that after CFPB contacts the 34 nonbank lenders, the lenders will most likely send their auto dealer clients a letter explaining that they need to be in compliance with a fair lending program.

CFPB issued a bulletin in 2013 that said indirect lenders, including credit unions, would be held liable for Equal Credit Opportunity Act violations of auto dealers, including violations arising from disparate impact. NAFCU steadfastly supports the enforcement of fair lending laws but it has raised concerns about actions that rely solely on the use of the disparate-impact theory of discrimination.