Ben Eisen

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1,467 appearances 35 recordings 1 series first heard Jul 2017 last heard Nov 2024

Ben Eisen’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · Why Some Car Dealers Tell Borrowers to Stop Making Payments · 18 Feb 2020 podcast

One thing that I think is important to note is just really this is very much a case of short-term thinking when you think about how dealerships go about it, right?

Because they are putting a consumer in a very bad situation and

And they might not be able to come back and buy a car down the line.

And then you're putting the lender in a bad situation.

And if things unravel, which they may or they may not, it could impact your relationship with the lender as well.

The lender could pull financing.

So it's important to be clear that it's not like this happens in every dealership.

But really, when you do see dealerships where it's happening, it's kind of an open secret is what we've been told.

Oh, okay.

And when a lender does find out about something like this, they will typically pull their financing.

And we have seen that in some of these cases where a dealership has been forced to shut down because the lenders pull financing with these fraud cases generally.

But it can take a very long time for someone to catch on.

just sort of generally speaking, there's a lot of cheap credit flooding into the auto market these days.

And lenders are almost kind of tripping on top of each other to offer loans to buyers.

So when you see that, you do have a lot of dealerships have a lot of access to be able to get these loans for borrowers and they could rotate through them.

There's all sorts of things that can go on.

So one interesting facet of this is that when the CFPB was created, the Consumer Financial Protection Bureau, the dealerships did a lot of lobbying and they were actually carved out from oversight under Consumer Financial Protection.

They are subject to the oversight of FTC and all the state regulators, but they did score a big win there.

So there's that.

And also on the consumer front, I would just note sort of one separate aspect, which is that a lot of these cases do really start with consumers making bad decisions, whether it's that there is a bit of naivete or they just do not have great understanding of finance and personal finance.

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