CFPB Unveils “Know Before You Owe” Tool for Auto Purchases

Last week, the CFPB unveiled its “Know Before You Owe” tool for auto lending.  The “Auto Lending Shopping Sheet” provides a step by step guide for consumers purchasing automobiles and highlights the items which are negotiable.  It is important to note that the “Know Before You Owe” tool does not involve new regulations but is instead an educational tool for consumers.  Patterned after the mortgage “Know Before You Owe” series, the CFPB tool includes a series of informational resources which walk consumers through the purchase of a car step by step. Importantly, the tool includes information regarding credit reporting (including the impact of credit inquiries), fair lending and the Servicemembers Civil Relief Act.