The Consumer Financial Protection Bureau has taken a sweeping approach in using its authority to propose supervision of the largest nonbank auto lenders, unveiling a plan that would effectively cover 90% of the market.

The agency late Wednesday unveiled a proposal to regulate the top 38 nonbank auto lenders among the more than 500 in the market. While that is just 7% of the industry, they produce more than 90% of the loan transactions in the market. As a result, observers said the proposal will have a broader impact on the industry as a whole.

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