Dealers could get their wish to have the Consumer Financial Protection Bureau’s auto lending guidance repealed, if a pair of resolutions from the House and Senate pass Congress. This action would affect all dealers, and NADA is urging dealers to call their member of Congress to urge a vote for the repeal.
The CFPB issued its auto lending guidance in March 2013 in an effort to limit dealer discretion to offer discounts to customers based on their credit history. The CFPB was concerned that loan markups showed evidence of racial discrimination.
Sen. Pat Toomey (R-PA), a member of the Senate Banking Committee, is eager to repeal the auto lending guidance and believes the Senate panel will do so in the coming weeks.
The Government Accountability Office has determined that Congress can repeal the CFPB guidance with a simple majority, so the Senate does not need 60 votes. But it must do so within 60 legislative days of the GAO ruling, about May 10.
NADA has said that a vote could come as soon as this week. The association urges members to contact their senators and representatives to voice their support for S.J. Res. 57 and H.J. Res. 132. For more information, click here, or call the NADA Legislative Office at 202-547-5500.
Mick Mulvaney is still acting CFPB director. But in a recent hearing before the U.S. Court of Appeals for the D.C. Circuit Court, judges seemed skeptical about whether Mulvaney could be both director of the Office of Management and Budget (OMB) and acting director of the CFPB. The judges’ panel has not yet ruled.Download Bulletin PDF