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General Motors

GM Financial hit with subprime subpoena

By
Ben Geier
Ben Geier
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By
Ben Geier
Ben Geier
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August 4, 2014, 12:10 PM ET
General Motors Offers Stocks At $33 A Share For Initial Public Offering
DETROIT - NOVEMBER 18: Signs stand in front of the General Motors world headquarters complex November 18, 2010 in Detroit, Michigan. GM returned to selling its newly issued stock to the public today as they resumed trading on the NYSE. The stock sales are expected to generate approximately $23 billion for General Motors. (Photo by Bill Pugliano/Getty Images)Photograph by Bill Pugliano—Getty Images

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.

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