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NADA Chairman Forrest McConnell urged dealers this week to call on Congress to support H.R. 5403, a new bipartisan bill that would nullify the Consumer Financial Protection Bureau (CFPB)ês flawed guidance on indirect auto lending. Since the bill was introduced on September 8, it has gained support in Congress from nearly 100 members of the House on both sides of the aisle.
As noted in this bulletin and elsewhere, H.R. 5403, titled Reforming CFPB Indirect Auto Financing Guidance Act, requires the CFPB to provide a public comment period before reissuing any guidance on auto finance. The bill also requires transparency and accountability from the agency by making public any studies, data and analyses used to determine future guidance on auto finance.
The CFPB March 2013 guidance tried to eliminate the flexibility of new-car dealers to discount financing rates offered to their customers because of alleged discrimination against minorities.
Our message to the CFPB is this: Make sure you fully understand the industry youêre attempting to regulate before issuing guidance by allowing for feedback and public participation, said McConnell. Be aware that your actions can harm consumers rather than protect them.
To locate your House member, click here. For the issue brief on H.R. 5403, list of cosponsors, bill text and a section by section analysis, click here. For more information, click here.Download Bulletin PDF