SACRAMENTO, Calif. – The outcome of pending class action suits on the East coast brought by consumer groups against an auto manufacturer’s financing company concerning buy-rate financing could influence the shape legislation on the issue may take in California. Under arrangements dealers have with certain financing companies and institutions, dealers sell financing paper they’ve drawn up with a vehicle buyer at a negotiated rate, for a higher rate with lenders. The dealer and lender subsequently either split the difference or the dealer keeps it entirely. Credit unions cannot participate in the practice. CCUL Lobbyist John Vann Etten said California legislators are considering three options – prohibiting the practice in California; requiring increased disclosure about the practice to vehicle buyers; or capping the rate dealerships can increase the rate. At this point, Vann Etten said state legislators are in a `wait and see’ mode. He described them as, “snooping around the issue.”

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.