New report by the CFPB found that some servicers repossessed vehicles without a recorded lien, causing substantial injury to consumers.

Outstanding auto loan balances totaled more than $1.64 trillion through the third quarter of 2024, representing over 100 million active auto finance accounts and $63 billion in new monthly originations as of April 2024. Despite auto loans being one of the largest sources of consumer credit outside of mortgage lending, detailed information about the auto finance market is limited.

In February 2023, the CFPB launched the auto finance data pilot, issuing nine market monitoring orders to three banks, three finance companies, and three captive lenders to provide information about their auto lending portfolios. The orders requested data regarding accounts originated or with servicing activity from January 1, 2018 through December 31, 2022.

This is the second report examining the data collected from the auto finance data pilot. The first report provided findings on negative equity. While some estimates of repossession volume exist, currently available data do not provide detailed information on repossessions.

As with foreclosures and evictions, repossessions are extremely disruptive because the consumer may lose access to their vehicle, which may also prevent the consumer from getting to work; the consumer may still be required to repay any outstanding balance from the loan plus fees associated with the repossession; or the consumer may see a negative impact to their credit score. However, the level of available data on repossessions is significantly less compared to other credit markets.