Business

Auto loan delinquencies climbed to $9 billion in 2018

NNPA NEWSWIRE — … in April of last year, Congress used the Congressional Review Act to nullify the Consumer Financial Protection Bureau’s (CFPB) auto finance guidance that held auto lenders responsible for discriminatory lending practices prohibited under the Equal Credit Protection Act. This distorted use of the Congressional Review Act, sometimes known as another CRA, was never intended to overturn long-standing agency practices.

Published

7 years ago

February 18, 2019

Oakland Post

By Charlene Crowell, NNPA Newswire Contributor

In recent months, many economists and lawmakers have frequently touted how the nation’s economy is performing really well. Often citing historically low unemployment rates, I’ve always felt that such pronouncements failed to consider the untold millions of Americans who are eking out a living on low or no raises, or others who work multiple jobs trying to piece together a living for their families.

But new data from the Federal Reserve Bank of New York, offers hard evidence that a key sector of the economy is showing signs of distress: auto loans. At the end of 2018, 7 million consumers were three months behind on their car payments, according to the Fed’s Liberty Street Economics.

Addressing its finding of multi-million auto loan delinquencies, the Fed wrote, “That is more than a million more troubled borrowers than there had been at the end of 2010 when the overall delinquency rates were at their worst, since auto loans are now more prevalent.”

I suspect that many consumers want to keep a car available just as much as a roof over their heads. Reliable wheels also offer a certain amount of freedom of mobility that eliminates the need to know a train or bus route or the fare.

So why are so many consumers delinquent on their car loans?

Answers can be found by examining the terms of the loans. Just as the foreclosure crisis took people’s homes, the wrong car loan takes your mobility. Consumers with lower credit scores – less than 620 on a scale that reaches 850 – become easy targets for sub-prime auto finance that comes with interest rates from the mid-teens to as high as 20 percent. Auto finance companies are often used by lower credit score consumers looking to buy a car.

By comparison, consumers with credit scores of 661 to 780 or higher typically have car loan interest rates of 6 percent or less. These consumers frequently finance their autos from banks, credit unions, or the financing arms of major auto manufacturers. Of the nation’s $1.27 trillion in car loan debt, 30 percent of loans were made to consumers with credit scores over 760.

As Liberty Street reports, 6.5 percent of auto finance loans are 90 days or more past due, compared with only 0.7 percent of loans originated by credit unions. So unfortunately, once again, it is the struggling, working poor who are bearing the brunt of car loan delinquencies, often forged by predatory high-interest rates and other practices.

Another new and independent research report entitled, Driving Into Debt, found that the money now owed on cars is up 75 percent since the end of 2009, an all-time record.

Jointly authored by U.S. Public Interest Research Group (US PIRG) and the Frontier Group, this report states that subprime auto lenders inflict financial abuses that are both predatory and discriminatory from making loans to people without the ability to repay, marking up rates and prices on both Black and Latino customers, and financing expensive add-on products like extended warranties and insurance into the car loans.

“Americans shouldn’t have to fight their way through a thicket of tricks and traps at the auto dealer just to get the transportation they need to get to work or school,” said Ed Mierzwinski, U.S. PIRG’s senior director for federal consumer programs and a report co-author.

Nor does it help that in April of last year, Congress used the Congressional Review Act to nullify the Consumer Financial Protection Bureau’s (CFPB) auto finance guidance that held auto lenders responsible for discriminatory lending practices prohibited under the Equal Credit Protection Act. This distorted use of the Congressional Review Act, sometimes known as another CRA, was never intended to overturn long-standing agency practices.

But in 2018, the law was used to overturn 14 agency rules. At the time, Senate Majority Leader Mitch McConnell described the auto lending CRA as part of a broader deregulation effort, stating: “Our whole economy is getting a tune-up. And now it’s time for the front end of the auto industry to come along for the ride.”

That kind of perspective suggests that the Majority Leader may have an unhealthy regard for fair lending laws, particularly those aimed at eliminating racial and ethnic discrimination. Further, time and actions will tell how much Kathy Kraninger, the new CFPB Director, is attuned to the predatory and discriminatory lending that continues despite federal laws.

“We need a strong Consumer Financial Protection Bureau and help from state Attorneys General and local officials to enforce consumer and fair lending laws against unfair car loan tactics,” added Mierzwinski. “Otherwise, consumers and the overall economy will suffer.”

“Predatory and discriminatory auto lending practices notoriously prey upon the financially distressed, with loans that disregard the consumer’s ability to afford them,” noted Rebecca Borne, a Senior Policy Counsel with the Center for Responsible Lending. “Common-sense regulation and enforcement are needed to ensure responsible underwriting and elimination of other predatory practices that are consistently shown to result in borrowers of color paying more than white borrowers, even controlling for creditworthiness.”

Charlene Crowell is the Center for Responsible Lending’s Communications Deputy Director. She can be reached at Charlene.crowell@responsiblelending.org.

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Oakland Post: Week of February 11 = 17, 2026

The printed Weekly Edition of the Oakland Post: Week of – February 11 – 17, 2026

Published

3 hours ago

February 16, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

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Rising Optimism Among Small And Middle Market Business Leaders Suggests Growth for California

“Business leaders across the Pacific region continue to demonstrate a unique blend of resilience and forward-thinking, even in the face of ongoing economic uncertainty,” said Brennon Crist, Managing Director and Head of the Pacific Segment, Commercial Banking, J.P. Morgan. “Their commitment to innovation and growth is evident in the way they adapt to challenges and seize new opportunities. It’s this spirit that keeps our region at the forefront of business leadership and progress. We look forward to helping our clients navigate all that’s ahead in 2026.”

Published

2 days ago

February 14, 2026

Oakland Post

Super Scout / E+ with Getty Images.

Sponsored by JPMorganChase

Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.

The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.

Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.

Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in California. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity this year:

Inflation remains the top concern for small business owners. Following the 2024 U.S. presidential election, many anticipated a favorable business environment. By June 2025, however, that feeling shifted amid concerns about political dynamics, tariffs, evolving regulations and global economic headwinds.
Going into 2026, 37% of respondents cited inflation as their top concern. Rising taxes came in second at 27% and the impact of tariffs was third at 22%. Other concerns included managing cash flow, hiring and labor costs.

For middle market leaders, uncertainty remains an issue. Almost half (49%) of all midsize business leaders surveyed cited “economic uncertainty” as their top concern – even with an improved outlook from a few months ago. Revenue and sales growth was second at 33%, while tariffs and labor both were third at 31%.
And tariffs are impacting businesses costs. Sixty-one percent of midsize business leaders said tariffs have had a negative impact on the cost of doing business.
Despite challenges, leaders are bullish on their own enterprises. Though the overall outlook is mixed, 74% of small business owners and 71% of middle market companies are optimistic about their company’s prospects for 2026.
Adaption is the theme. For small business owners surveyed across the U.S., responding to continuing pressures is important in 2026. Building cash reserves (47%), renegotiating supplier terms (36%) and ramping up investments in marketing and technology are among the top priorities.
Big plans are on the horizon. A majority midsized company leaders expect revenue growth this year, and nearly three out of five of (58%) plan to introduce new products or services in the coming year, while 53% look to expand into new domestic and/or international markets. Forty-nine percentsay they’re pursuing strategic partnerships or investments.

The bottom line

Rebounding optimism among U.S. business leaders at the start of the year is setting the stage for an active 2026. With business leaders looking to implement ambitious growth plans that position themselves for the future, momentum in California could be beneficial for leaders looking to launch, grow or scale their business this year.

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Discrimination in City Contracts

The report was made public by Councilmember Carroll Fife, who brought it this week to the Council’s Life Enrichment Committee, which she chairs. Councilmembers, angry at the conditions revealed, unanimously approved the informational report, which is scheduled to go to an upcoming council meeting for discussion and action. The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

Published

4 days ago

February 13, 2026

Oakland Post

Dr. Eleanor Ramsey (top, left) founder, and CEO of Mason Tillman Associates, which conducted the study revealing contract disparities, was invited by District 3 Councilmember Carroll Fife (top center) to a Council committee meeting attended by Oakland entrepreneur Cathy Adams (top right) and (bottom row, left to right) Brenda Harbin-Forte, Carol Wyatt, and councilmembers Charlene Wang and Ken Houston. Courtesy photos.

Disparity Study Exposes Oakland’s Lack of Race and Equity Inclusion

Part 1

By Ken Epstein

A long-awaited disparity study funded by the City of Oakland shows dramatic evidence that city government is practicing a deeply embedded pattern of systemic discrimination in the spending of public money on outside contracts that excludes minority- and woman-owned businesses, especially African Americans.

Instead, a majority of public money goes to a disproportionate handful of white male-owned companies that are based outside of Oakland, according to the 369-page report produced for the city by Mason Tillman Associates, an Oakland-based firm that performs statistical, legal and economic analyses of contracting and hiring.

The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

The amount of dollars at stake in these contracts was significant in the four areas that were studied, a total of $486.7 million including $214.6 million on construction, $28.6 million on architecture, and engineering, $78.9 million on professional services, and $164.6 million on goods and services.

While the city’s policies are good, “the practices are not consistent with policy,” said Dr. Eleanor Ramsey, founder and CEO of Mason Tillman Associates.

There have been four disparity studies during the last 20 years, all showing a pattern of discrimination against women and minorities, especially African Americans, she said. “You have good procurement policy but poor enforcement.”

“Most minority- and women-owned businesses did not receive their fair share of city-funded contracts,” she continued. “Over 50% of the city’s prime contract dollars were awarded to white-owned male businesses that controlled most subcontracting awards. And nearly 65% of the city’s prime contracts were awarded to non-Oakland businesses.”

As a result, she said, “there is a direct loss of revenue to Oakland businesses and to business tax in the city… There is also an indirect loss of sales and property taxes (and) increased commercial office vacancies and empty retail space.”

Much of the discrimination occurs in the methods used by individual city departments when issuing outside contracts. Many departments have found “creative” ways to circumvent policies, including issuing “emergency” contracts for emergencies that do not exist and providing waivers to requirements to contract with women- and minority-owned businesses, Ramsey said.

Many of the smaller contracts – 59% of total contracts issued – never go to the City Council for approval.

Some people argue that the contracts go to a few big companies because small businesses either do not exist or cannot do the work. But the reality is that a majority of city contracts are small, under $100,000, and there are many Black-, woman- and minority-owned companies available in Oakland, said Ramsey.

“Until we address the disparities that we are seeing, not just in this report but with our own eyes, we will be consistently challenged to create safety, to create equity, and to create the city that we all deserve,” said Fife.

A special issue highlighted in the disparity report was the way city departments handled spending of federal money issued in grants through a state agency, Caltrans. Under federal guidelines, 17.06%. of the dollars should go to Disadvantaged Business Enterprises (DBEs).

“The fact is that only 2.16% of all the dollars awarded on contracts (went to) DBEs,” Ramsey said.

Speaking at the committee meeting, City Councilmember Ken Houston said, “It’s not fair, it’s not right. If we had implemented (city policies) 24 years ago, we wouldn’t be sitting here (now) waiving (policies).”

“What about us? We want vacations. We want to have savings for our children. We’re dying out here,” he said.

Councilmember Charlene Wang said that she noticed when reading the report that “two types of business owners that are consistently experiencing the most appalling discrimination” are African Americans and minority females.

“It’s gotten worse” over the past 20 years, she said. “It’s notable that businesses have survived despite the fact that they have not been able to do business with their own city.”

Also speaking at the meeting, Brenda Harbin-Forte, a retired Alameda County Superior Court judge, and chair of the Legal Redress Committee for the Oakland NAACP, said, “I am so glad this disparity study finally was made public. These findings … are not just troubling, they are appalling, that we have let these things go on in our city.”

“We need action, we need activity,” she said. “We need for the City Council and others to recognize that you must immediately do something to rectify the situation that has been allowed to go on. The report says that the city was an active or inactive or unintentional or whatever participant in what has been going on in the city. We need fairness.”

Cathy Adams, president of the Oakland African American Chamber of Commerce, said, “The report in my opinion was very clear. It gave directions, and I feel that we should accept the consultant Dr. Ramsey’s recommendations.

“We understand what the disparities are; it’s going to be upon the city, our councilmembers, and our department heads to just get in alignment,” she said.

Said West Oakland activist Carol Wyatt, “For a diverse city to produce these results is a disgrace. The study shows that roughly 83% of the city contracting dollars went to non-minority white male-owned firms under so-called race neutral policies

These conditions are not “a reflection of a lack of qualified local firms,” she continued. “Oakland does not have a workforce shortage; it has a training, local hire, and capacity-building problem.”

“That failure must be examined and corrected,” she said. “The length of time the study sat without action, only further heightens the need for accountability.”