Yesterday it was disclosed that “state attorneys general and other governmental offices” are investigating General Motors Financial Company, Inc. “in connection with subprime auto loans and the sale of subprime auto loans in the form of asset-backed securities.” As reported by Automotive News, the probes are in addition to an August 2014 subpoena from the U.S. Department of Justice “to produce certain documents relating to its and its subsidiaries’ and affiliates’ origination and securitization of subprime automobile loan contracts since 2007.”
According to a quarterly report filed with the Securities and Exchange Commission, “In September 2014, GM Financial was served with additional investigative subpoenas to produce documents from state attorneys general and other governmental offices relating to its subprime auto finance business and securitization of subprime auto loans. GMF is investigating these matters internally and believes it is cooperating with all requests.”
In 2010, GM bought AmeriCredit, a subprime auto loan specialist based in Fort Worth, and subsequently established GM Financial. GM Financial has declined to comment.