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WASHINGTON, D.C. — For the third consecutive year, the American
Financial Services Association and the National Automobile Dealers Association
co-sponsored the Vehicle Finance Executive Forum at NADA's headquarters.

AFSA recapped that the June event brought together chief
executive officers and other top executives from virtually every major finance
company and bank in the nation engaged in indirect auto finance, as well as the
leaders of the nation's franchised automobile dealers.

Co-chaired by Andrew Stuart, chairman of AFSA's Vehicle
Finance Division and president and CEO of VW Credit, and NADA chairman Bill
Underriner, the meeting's primary focus was the challenging legislative and
regulatory environment for finance sources and dealers.

Educational initiatives and technology innovations were also
discussed, according to AFSA.

Officials indicated plans
are already underway for the 2013 AFSA/NADA Executive Forum. For more
information, contact Sheilah Harrison, AFSA Vehicle Finance Division liaison,
at sharrison@afsamail.org.

AFSA Submits Letter on CFPB Arbitration Study

In other association news, AFSA recently submitted a comment
letter to the Consumer Financial Protection Bureau as it begins to conduct a
study of the use of pre-dispute arbitration agreements.

Officials reiterated the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) directs the CFPB to conduct this
study. AFSA said it took action in response to the bureau's request for
suggestions from the public to help identify the appropriate scope of the
study, sources of data for the study and appropriate methods of study.

AFSA wrote, "The study should focus on: the content of
pre-dispute arbitration agreements, rules and procedures used in pre-dispute
arbitrations, a comparison between pre-dispute arbitrations and litigation, and
the broader context of pre-dispute arbitration agreements on financial services."

To execute the study, AFSA recommended that the CFPB use
existing reports and studies, collect data from arbitration providers, survey
consumers in a fair and unbiased manner where appropriate and gather input
from a panel of industry experts where appropriate.

AFSA also suggested that the CFPB subject the study to a
"peer review" process before publishing it and seek comments on the completed
study.

Association leadership also mentioned the Dodd-Frank Act establishes
a new legal standard for arbitration, allowing the CFPB to prohibit, or impose
conditions or limitations, on the use of pre-dispute arbitration agreements if
the CFPB finds that such prohibitions, conditions, or limitations are in the
"public interest and for the protection of consumers."

AFSA's letter asked "that the CFPB carefully consider
whether further regulation of pre-dispute arbitration agreements is necessary,
especially since there are very few complaints about pre-dispute arbitration
agreements in the CFPB's published results of its complaint database."

New AFSA Members

Two of the nation's largest financial institutions recently became
members of AFSA.

Officials welcomed Bank of America and Santander Consumer
USA.

"AFSA's mission is to promote responsible, ethical lending
to responsible, informed borrowers and to improve and protect consumers' access
to credit," AFSA reiterated about its membership that now consists of more than
325 companies.