Consumer Protection in Automotive Financing

Summary

A consumer's finance and purchase of automobiles is subject to various state and federal laws. For example, automobile transactions, including repossessions, are governed by applicable state law, which often impose certain notice requirements on auto dealers and creditors related to the sale or lease of automobiles. At the federal level, auto finance companies and dealers must negotiate complex notice and disclosure requirements under the Truth in Lending Act (TILA), the Consumer Leasing Act, the Federal Odometer Act, and any applicable regulations. This practice note provides an overview of these requirements, including other legal issues impacting consumer automotive finance.