Kudos to NADA: The House passes dealer legislation to curb CFPB by a wide margin
Hats off to NADA, NAMAD, AIADA and the ATAE dealer association network on the overwhelming passage this week of HR 1737 Reforming CFPB Indirect Auto Financing Act. With a bipartisan majority vote of 332 to 96, the House of Representatives took the Consumer Finance Protection Bureau down a peg by adopting the NADA-advocated legislation which would reverse their Bulletin advisory, 2013-02, to the financial institutions designed to curtail a dealerês ability to discount auto financing rates for consumers while mandating public participation and transparency in CFPBês policy making in the future.
CFPBês well-publicized strategy to limit indirect financing on auto loans by dealers included a smear campaign, attempting to implicate auto retailers in discriminating against minorities in rating their auto loans higher than non-minorities.
HR 1737, cosponsored by Reps. Frank Quita (R-NH) and Ed Perlmutter (D-Co), was support by most congressmen from the metropolitan Washington area, but not all. The legislation now goes to the Senate, where it should similarly enjoy bipartisan support, and from there to the president who is likely to veto it, in support of his administrationês newly created agency, CFPB.
The dealers goal is to see CFPB reined in to prevent regulators from wrongfully setting back the invaluable role dealers play for consumers in the auto financing realm. The goal is also to strive to subject the unbridled power of CFPB regulators to the elected leaders to whom they must be accountable.
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