Wall Street Bet Big on Used-Car Loans for Years. Now a Crisis May Be Looming.

For years , investors bought bonds backed by auto loans because they reliably produced handsome returns.

But now, for the first time in decades , that winning streak appears to be coming to an end.

The Consumer Financial Protection Bureau is suing two of those lenders over potentially predatory practices.

Experts say the woes could signal a significant blow to a key pillar of the U.S. economy.

Authorities accuse the company of charging interest rates so high that they violate New York law.

CAC has denied the regulators’ allegations, arguing that it is not directly involved in the transactions between dealers and car buyers.

The lawsuit argues that borrowers and bond investors are both victims of the alleged scheme.