The U.S. House of Representatives passed a bill last week that rescinds auto finance guidance issued by the Consumer Financial Protection Bureau (CFPB) in 2013. NADA has been working on ending the financing guidance for some time, and this year it was one of the association’s top public policy priorities.
The bill, S.J. Res. 57, passed on a bipartisan vote of 234 to 175. All Republicans, except one, voted for the bill; all Democrats, except 11, voted against it. That means that of the delegation in the immediate Washington area, only Barbara Comstock (R-VA) voted for it. A “yes” vote, in NADA’s view, is the pro-dealer, pro-consumer position; a “no” vote is the anti-dealer, anti-consumer position. NADA and WANADA encourage their members to thank those who voted to repeal the CFPB’s flawed guidance and preserve affordable auto loans for consumers.
Although the CFPB regulates lenders, it is explicitly prohibited from regulating dealers – but that was the effect of the 2013 finance guidance. The Senate had already passed the bill, and President Trump is expected to sign it. The measure will preserve dealer reserve and dealers’ ability to offer customers discounted auto loans. NADA continues to encourage dealers to use its fair credit compliance program. To access that program, go to NADA’s websiteDownload Bulletin PDF