The American Financial Services Association (AFSA) announced it is pleased the Consumer Financial Protection Bureau (CFPB) dropped its litigation against the Credit Acceptance Corporation, claiming the case was an overreach beyond the Bureau’s authority. That announcement was shared in a post on the AFSA website.
According to AFSA, the CFPB's lawsuit was an attempt to reverse established law and create new requirements contrary to existing statutes and regulations. In an amicus brief authored by Troutman Pepper Locke, AFSA and others argued that the CFPB had adopted unsupported legal positions and retroactively altered rules for consumer financial service providers. The association further asserted that the Bureau’s legal theories conflicted with properly enacted statutes and exceeded its authority.
In a statement regarding the announcement, AFSA President-elect Celia Winslow said, "Continued pursuit of this action would have limited the availability of auto financing and deprived those most in need of financing from being able to acquire the cars they need to get to school and work." Winslow's comments were made in response to the CFPB’s decision.
The Federal Reserve reported that as of February 2025, consumer loans outstanding in the United States totaled approximately $1.87 trillion. Auto loans alone accounted for over $1.5 trillion of consumer credit balances by the end of 2024, highlighting trends in consumer credit availability as key indicators of broader economic health.
The American Financial Services Association is a national trade association representing companies offering credit to U.S. consumers and small businesses. Founded in 1916, it is headquartered in Washington, D.C.
