CPS Subpoenaed By DOJ
This month, the Department of Justice issued a subpoena to Consumer Portfolio Services requiring the finance source to turn over documents related to subprime auto finance.
IRVINE, Calif. — In a regulatory filing posted last week, Consumer Portfolio Services revealed that the U.S. Department of Justice has subpoenaed the finance source, requesting documents related to its subprime auto finance practices and related securitization activities.
CPS received the subpoena on Jan. 14, according to the Securities and Exchange Commission filing. “Other purchasers of subprime automotive receivables have disclosed receiving similar requests at various times since July 2014,” the document read, in part.
Those other purchasers include Santander Consumer USA, Ally Financial, GM Financial and Credit Acceptance. In recent months, the DOJ has also threatened Toyota Motor Credit Corp. and American Honda Finance Corporation with enforcement actions related to the finance sources’ auto lending practices, which have allegedly resulted in discriminatory pricing.
Originally posted on F&I and Showroom
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