GM Subprime Car Lending Draws DOJ Attention

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Aug. 5 (Bloomberg) -- Federal prosecutors are asking questions about the practices of GM’s financing unit, subpoenaing the company in the midst of a resurgence in U.S. auto sales fueled partly by a subprime lending boom. Matt Miller reports on “In The Loop.” (Source: Bloomberg)

That subprime lending is feeling strong auto sales.

Bloomberg news' matt miller joins us with more on this.

Again here?

We should be clear that the justice department has not expressed -- has expressed concerns and frankly, it is clear that subprime lending is boosting auto sales.

That is not necessarily a bad thing in itself, but the question is how they are conducting the subprime auto lending.

It is not illegal to lend money to someone who does not have an 800 credit score, and all the makers do it in some fashion.

"the new york times" had a great piece about the fact that subprime lending makes up one quarter of u.s. car sales.

That is a great point -- there is nothing illegal about it, but it only raises red flags when there is abuse found.

You are 100% correct, and, frankly, it is a good thing in a lot of cases.

People in america need cars to get to jobs.

We have some of the worst public transportation systems in the western world, so you have to drive to most places if you want to get to your job, so if your credit is bad, that does not help you any.

It is better if you have auto lenders that are giving you a chance, especially these lenders.

Gm, by the way, finances the biggest of these auto-old lenders.

The department of justice is looking into this.

Chrysler has said the department of justice is not looking into its lending.

Ford has not given us any comment on whether or not it has been subpoenaed.

You can watch or more of these to roll out.

The department of justice has been successful with subprime

This text has been automatically generated. It may not be 100% accurate.


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