The Consumer Financial Protection Bureau has struggled internally with how to end potential discrimination in auto lending, including debating whether it should cite a large lender in the hope of effectively ending the ability of partnering dealers to mark up loans with all lenders.

In a series of internal documents reviewed by ASR sister publication American Banker, agency officials wrestle with the practice of dealer markup, in which the dealership typically keeps the difference between the rate set by the lender and the one agreed to by the borrower as its compensation. On multiple occasions, CFPB officials suggested to forgo rulemaking and instead use a few high-profile enforcement actions against large auto lenders to do away with dealer discretion, thereby significantly curbing potential discrimination.

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