Several members of the LAW
® Product Development and Compliance team recently traveled to Baltimore for the
2025 Hudson Cook | CounselorLibrary Financial Services Conference. This unique opportunity to meet with and learn from top experts in the consumer finance space gave us much to consider on our way home. Here are some of our key takeaways:
Federal Enforcement Over Rulemaking
The Federal Trade Commission (FTC) is focusing on enforcement, with primary emphasis on privacy, subscription cancellations and automatic renewals, price transparency, and the promotion or misrepresentation of the capabilities of Artificial Intelligence (AI) tools. The FTC is also taking a renewed interest in finance companies due to changes at the Consumer Financial Protection Bureau (CFPB).
State Regulators Stepping Up
State enforcement actions against motor vehicle dealers and lenders remain a concern. Junk fees and price transparency continue to be common accusations raised by the regulators. In addition to penalties, regulators are pursuing damages for injured customers.
Arbitration Provisions Under Pressure
Challenges to arbitration provisions continue, underscoring the importance of having a strong, battle-tested provision. Additionally, several arbitration organizations have begun addressing mass arbitrations in their rules, but continued monitoring is required.
Evaluating AI Opportunities vs. Risks
As AI continues to grow in consumer finance, the promise to help dealers and lenders streamline processes and increase efficiency must be measured against its responsible use and known limitations. Dealers and lenders need to review their systems due to an increase in state legislation around AI, its use, and its impact on users.
Conclusion
The annual Financial Services Conference remains one of the best places to learn about new trends, issues, and approaches in automotive sales and financing. The LAW Product and Compliance teams are studying these and other issues to ensure that LAW products continue helping lenders and dealers sell, finance, and lease motor vehicles.
This article is for general or educational purposes only. You should NOT consider or use any information or opinions in this article as legal, accounting, or other professional advice or counsel. Any views or opinions in the article are the author’s and not those of Reynolds and Reynolds. For legal advice, please consult with your legal counsel.