Credit applicants cannot be denied loans solely because of their immigration status, according to a joint statement from the Consumer Financial Protection Bureau (CFPB) and Justice Department last week.

The statement was a reminder to lenders that credit applicants are “protected on the basis of their national origin, race, and other characteristics covered by the Equal Credit Opportunity Act, regardless of their immigration status.”

The statement followed reports of consumers being denied credit cards and loans because of their immigration status, even while having established credit in the United States. The statement states that the Equal Credit Opportunity Act allows a creditor to “consider an applicant’s immigration status when necessary to ascertain the creditor’s rights regarding repayment, creditors should be aware that unnecessary or overbroad reliance on immigration status, including when that reliance is based on bias, may run afoul of the law.”

CFPB Director Rohit Chopra said, “Fair access to credit is crucially important for building wealth and strengthening household financial stability. The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.”

The U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit Oct. 13 that Wheeler Trucking violated federal civil rights laws when the company subjected an employee at its Lorain County, Ohio location to harassment because of race and religion, denied him a religious accommodation, retaliated against him for complaining and separated him from employ­ment

According to the EEOC’s lawsuit, Wheeler Trucking subjected the former employee to frequent, severe harassment because of race and religion and denied him Saturdays off work, which he requested as a religious accommodation. The EEOC alleged that the harassment by Wheeler Trucking personnel included the use of racial slurs and other derogatory terms. The lawsuit was filed by the EEOC’s Philadelphia District Office.

On Oct. 11, the Consumer Financial Protection Bureau (CFPB) released a special edition of its Supervisory Highlights focused on the agency’s efforts to “protect consumers from illegal junk fees.” The junk fees discussed in the report included fees for “fake paper statements and worthless add-on products for auto loans,” the CFPB stated. As a result of the CFPB’s supervisory work, the companies in Oct. 11’s report are refunding $140 million to consumers, $120 million of which is for surprise overdraft fees and double-dipping on non-sufficient funds fees. A separate report today finds that most financial institutions have eliminated non-sufficient funds fees, saving consumers an estimated $2 billion every year.

“The CFPB continues to uncover junk fee scams that violate the law and undermine consumer trust,” said CFPB Director Rohit Chopra. “We will continue to combat the illegal fees cropping up in consumer finance markets.”

This Supervisory Highlights special edition covers junk fees includes some auto loan servicing and remittances found during examinations between February and August 2023. CFPB oversight has identified instances of companies charging a variety of so-called junk fees, including ones involving guaranteed asset protection (GAP) insurance. In situations when borrowers paid off their loan early or had their vehicle repossessed, CFPB examiners found that loan servicers continued to charge fees for the add-on products, which no longer offered any value.

Coinciding with cybersecurity awareness month, HARMAN announced that its cybersecurity management system has been audited in accordance with the ISO/SAE 21434:2021 standard and obtained the certificate of compliance, further strengthening the automotive supply chain for OEM partners.

The certification helps the industry define a structured process to ensure cybersecurity is incorporated into the design of road vehicles and provides a framework for organizations to identify, assess, and manage cybersecurity risks throughout the lifecycle of their products. It plays a crucial role in safeguarding vehicles and vehicle occupants from potential cyber threats, while also promoting a standardized approach to automotive cybersecurity across the industry.

As a technology company with a long-standing heritage in automotive, HARMAN is well-equipped to support OEM partners in complying with the UNR 155 (UN Regulation No. 155), which requires that all OEMs implement a risk-based management framework (CSMS) for detecting and protecting against cyber threats throughout the vehicle cycle. Meeting the highest standards for automotive cybersecurity, HARMAN’s cybersecurity products protect the vehicle and passengers alike, providing OEMs with confidence that their supply chain is secure.

“With cybersecurity consistently being a top priority for new vehicles, HARMAN is committed to delivering products and technologies that have a tangible impact on improving the safety of connected vehicles,” said Huibert Verhoeven, SVP of Intelligent Cockpit at HARMAN. “Through strong collaboration, HARMAN passed the audit and obtained certification for ISO/SAE 21434 compliance, further validating HARMAN’s track record of successfully advancing cybersecurity innovations within new automotive experiences.”

The National Highway Traffic Safety Administration (NHTSA) has determined that airbag parts on a potential 52 million vehicles are defective and should be recalled. The safety agency held a public hearing at its USDOT headquarters in Washington, DC, on Thursday Oct. 5. The inflators subject to the NHTSA’s initial decision are hybrid, toroidal inflators manufactured by Tennessee-based auto supplier ARC Automotive.  ARC manufactured the driver hybrid, toroidal inflators between 2000 and 2018.  

In April of this year the NHTSA sent a letter to ARC Automotive, demanding a recall of the toroidal inflators.  The ARC inflator can explode when hit with too much force during a crash. Pieces of metal have hurled into the air striking occupants in the face and neck. The exploding ARC inflator killed a Michigan driver, Jacob Tarvis, on August 15, 2021. The airbag inflator ruptured in his 2015 Chevrolet Traverse.  At least seven others have been severely injured by defective inflators according to the agency's initial report. NHTSA enforcement official Cem Hatipoglu told the hearing that while the odds for a rupture may not be high, the consequences are "severe and potentially deadly." He said" The evidence shows without a recall more people will be injured or killed.”  Marlene Beaudoin, Jacob Tarvis’s mom,  urged the NHTSA to demand a recall. 

According to Wall Street Journal reporting there are 20 million potential GM vehicles alone that could be involved in the recall. The NHTSA has not released a breakdown of airbag inflators by manufacturers but 11 other vehicle manufacturers may be affected along with General Motors : BMW of North America, Ford Motor Company, Hyundai Motor America, Kia America, Maserati North America, Mercedes-Benz USA LLC, Porsche Cars North America, Tesla, Toyota Motor North America, and Volkswagen Group of America. A recall of this size would be  the largest in U.S. history. 

The federal agency has not verified who has legal responsibility under 49 U.S.C. Chapter 301 for the inflators. However, the safety agency has stated vehicle manufacturers that used the inflators as original equipment would be responsible for carrying out any recalls.

Shares of General Motors tumbled another 2.3% to $30.31 in Thursday trading. The automaker's shares are down 11% since the UAW strike began Sept.15.  Ford’s is down 6% and Stellantis’ has had a 2% drop.