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Full-Text Articles in Law
Bursting The Auto Loan Bubble In The Wake Of Covid-19, Pamela Foohey
Bursting The Auto Loan Bubble In The Wake Of Covid-19, Pamela Foohey
Articles by Maurer Faculty
Before the COVID-19 pandemic, auto loans outstanding in the United States had soared to record highs. The boom in lending spanned new and used cars and traditional and subprime loans. With loan delinquencies also hitting new highs almost every quarter, predictions that the auto lending market could burst soon abounded. When the economy came to a grinding halt and unemployment skyrocketed in the wake of the pandemic, auto lenders knew they were facing a crisis. Throughout 2020, auto lenders granted more payment forbearances to consumers, while slashing interest rates on new loans. Auto manufacturers similarly made promises to buyers, such …
Consumers' Declining Power In The Fintech Auto Loan Market, Pamela Foohey
Consumers' Declining Power In The Fintech Auto Loan Market, Pamela Foohey
Articles by Maurer Faculty
Automobiles have become part of America’s infrastructure. For most people, having access to a car is crucial to their livelihoods and they will take on significant amounts of debt to purchase vehicles. Auto debt is unlike any other consumer debt, both in its structure, which allows creditors to easily seize collateral, and in its lack of regulation. The unique and lucrative nature of auto debt has not gone unnoticed by lenders or by companies leveraging fintech to offer people new ways to purchase cars and car loans. This Article assesses the evolving marketplace for auto sales, leasing, and loans to …
Driven To Bankruptcy, Pamela Foohey, Robert M. Lawless, Deborah Thorne
Driven To Bankruptcy, Pamela Foohey, Robert M. Lawless, Deborah Thorne
Articles by Maurer Faculty
Over the last ten years, 15.1 million people owning 16.4 million cars filed for bankruptcy. These cars provided access to work, education, medical care, childcare, food, and other life necessities. They were also major household investments, the most expensive asset most bankruptcy filers owned other than a house. Using original data from the Consumer Bankruptcy Project, we document what happens to car owners and their car loans when they enter bankruptcy. In brief, we find that people who file bankruptcy own automobiles at the same rate as the general population and that they overwhelmingly indicate they want to use bankruptcy …