It’s not just the manufacturing arm of General Motors that’s dealing with the Feds. Now General Motors Financial is looking at a subpoena from the Department of Justice.
Issued last week, the subpoena deals with subprime auto loans issued since 2007. It focuses on information relating to underwriting criteria. Subprime auto loans have been a major topic recently as more customers with low credit scores have been getting loans to buy cars, often at very high rates. After the credit crisis, subprime lending virtually dried up, only making a comeback in the past few years.
The subpoena was disclosed in an SEC filing Monday morning.
General Motors Financial (GM) is the captive financing arm of the Detroit automaker, helping customers to finance vehicle purchases through contracted dealerships.