Automotive Financial Services

We regularly guide financial institutions and lenders in high-volume, asset-based, or floorplan commercial loan transactions regarding structures, documentation, negotiations, closings, and best practices. Our cross-disciplinary team also provides proactive—and often preemptive—counsel regarding loan-level litigation, workouts, out of court loan restructuring, and other atypical resolutions involving troubled dealers and assets. 

We also regularly advise floor plan lenders on: 

• Due diligence and risk analysis
• Reviews of document suites
• Subordination and intercreditor agreements
• Real estate loans in the context of floor plan lending
• Negotiation and closing of new floorplan loans and affiliated loan packages
• Structured termination of floor plan relationships with dealers

We routinely advise clients on each aspect of the automotive financing process, from licensing to the initial credit application to retail installment sales contract, loan and lease agreement documentation, through servicing, collections and repossession. We develop policies and procedures, compliance management systems, consumer correspondence, and quality assurance and quality control programs. We also represent clients in state, CFPB and OCC supervision matters and defending enforcement actions brought by the FTC, CFPB, OCC, Department of Justice and multiple state regulators and Attorneys General.

Examples of our recent experience include:

• Advising automotive finance companies on developing fair lending disparate impact self-assessments and related policies and procedures
• Advising automotive finance companies serving limited English proficiency (LEP) borrowers, including providing Spanish translations of websites and other servicing correspondence
• Advising automotive finance companies in connection with state and CFPB supervisory examinations
• Representing automotive finance companies in connection with civil investigative demands by state Attorneys General
• Creating and updating the full suite of nationwide repossession notices and accompanying policies and procedures, including specific notices for use when the borrower is protected by a bankruptcy proceeding
• Licensing a leading global investment business in its purchase of portfolios of consumer motor vehicle secured retail installment contracts
• Conducting due diligence on numerous samples of consumer motor vehicle secured retail installment contracts for bulk portfolio acquisitions and commercial credit extensions
• Developing and updating surveys of state laws extending benefits and protections to servicemembers beyond the Servicemembers Civil Relief Act (SCRA) for automotive finance companies
• Advising a leading e-commerce platform for automobile dealers on federal and state law compliance
• Representing automobile dealers on state licensing and structural issues related to e-commerce platforms and the development of sales and financing documentation

Understanding the complexities of ancillary products is key to every automotive finance client. The combination of our insurance and consumer financial services regulatory and compliance teams provides deep experience on federal and state law issues impacting the structure, documentation, licensing, sale, and financing of ancillary products, including credit insurance products, debt cancellation agreements (GAP insurance and waivers), service contracts, and warranties. We frequently advise clients throughout the industry on these issues.

We provide regulatory and compliance guidance on the full lifecycle of ancillary products, including:

• GAP waivers and debt cancellation agreements
• Vehicle service contracts and extended warranties
• Credit insurance
• Licensing, documentation, and marketing compliance across jurisdictions

We have a proven track record of defending financial services clients in litigation matters nationwide.  We have successfully defended clients against individual and consumer class actions, arbitrations, and in multidistrict litigation, often serving as national coordinating counsel. In addition to account-level litigation, contentious troubled-dealer matters, bankruptcies, foreclosures, and complicated workouts, we have extensive experience in lien priority, repossession, title, consumer protection, and other disputes. In fact, we have been recognized by Lex Machina as one of the top five firms nationwide in defending FDCPA, FCRA and TCPA and other consumer protection claims.