agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM’s Subprime Lending Draws Justice Department Scrutiny

General Motors Co. must turn over documents related to its subprime auto-lending under a subpoena issued by the U.S. Justice Department, the Detroit auto maker disclosed in a regulatory filing Monday, reported The Wall Street Journal. GM’s car-financing unit said it received the subpoena July 28 in connection with a federal investigation of subprime auto ... Read More »

August 6, 2014
2 min to read


General Motors Co. must turn over documents related to its subprime auto-lending under a subpoena issued by the U.S. Justice Department, the Detroit auto maker disclosed in a regulatory filing Monday, reported The Wall Street Journal.

GM’s car-financing unit said it received the subpoena July 28 in connection with a federal investigation of subprime auto loans dating to 2007. The statement said the request was “in contemplation of a civil proceeding for potential violations of Financial Institutions Reform, Recovery, and Enforcement Act of 1989.”

Ad Loading...

In a statement Monday, GM Financial said “our understanding is that the request is focused on the subprime auto finance space in general. There are no allegations set forth in the subpoena and GMF is cooperating with the request.”

The subpoena is one more sign that federal regulators are turning up pressure on the auto finance industry. The Justice Department and the Consumer Financial Protection Bureau have been investigating whether lenders are discriminating against women and minorities. Ally Financial Inc., the former consumer credit unit of GM, agreed in December to pay $98 million to settle a probe of its lending practices by the Justice Department and the CFPB. Ally didn’t admit wrongdoing under the agreement.

The Justice Department is looking at “underwriting criteria used to originate these automobile loan contracts and the representations and warranties relating to those underwriting criteria that were made in connection with the securitization of the automobile loan contracts,” GM Financial said in a filing with the Securities and Exchange Commission.

GM’s filing was reported earlier by Bloomberg News.

The disclosure by GM Financial indicates regulators’ concerns are expanding to questions about the quality of subprime auto loans.

Ad Loading...

In June, the Office of the Comptroller of the Currency noted that the average amount of an auto loan was greater than the value of the car during the fourth quarter of 2013, as lenders bundled the costs of extended warranties, credit life insurance and dealer-installed accessories into contracts.

“The results have yet to show large-scale deterioration at the portfolio level, but signs of increasing risk are evident,” the regulator said in a report.

DriveTime Automotive Group Inc., which operates a chain of “buy-here, pay-here” auto dealerships, disclosed in a March regulatory filing that the Consumer Financial Protection Bureau had notified the company in January that the agency was

More Industry

red car parked in front of a sunset, The Used Market Divide, Agent Entrepreneur
Industryby Lauren LawrenceJuly 23, 2026

Used EVs Defy Overall Market

While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.

Read More →
Photo of a retriever dog looking out of an open SUV window with a yellow Peugeot headrest on the top of the window below it
Industryby Hannah MitchellJuly 16, 2026

Gone to the Dogs

A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.

Read More →
Aerial shot of a car dealership
Industryby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Ad Loading...
Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Ad Loading...