Legislation to check CFPB auto finance guidance is introduced
A bill that would reverse the controversial 2013 auto finance guidance from the Consumer Finance Protection Bureau has been introduced in the U.S. House of Representatives. H.R. 1737 — Reforming CFPB Indirect Auto Finance Guidance Act of 2015 effectively would roll back the CFPB bulletin that was designed to pressure lending institutions into eliminating the availability of auto financing discounts, according to NADA.
Consumers have the right to obtain auto financing at discounted rates, and those rights should be protected, not threatened, said NADA president Peter Welch.
The bill was initially introduced at the end of the 113th Congress and garnered the pledges of 100 plus House Republicans and Democrats. It already has 19 cosponsors, including 9 Democrats. The bill must secure bipartisan support to ensure its passage in the House, NADA says. NADA asks dealers to contact their members of Congress to urge support of H.R. 1737.
Members of the House of Representatives from the Metropolitan Washington Area in the Maryland suburbs and Northern Virginia — all of whom WANADA leaders will be visiting on this matter in the days ahead — are: Don Beyer Jr. (D-Va.), Barbara Comstock (R-Va.), Gerald Connolly (D-Va.), John Delaney (D-Md.), Donna Edwards (D-Md.), Steny Hoyer (D-Md.) and Chris Van Hollen (D-Md.) The U.S. Capitol switchboard number is (202) 224-3121.
H.R. 1737 would require the CFPB to follow a transparent process providing for a public comment period, consulting with the agencies that share jurisdiction over the indirect auto financing market, and disclosing its testing methods before issuing any future guidance related to indirect auto credit.
The CFPB has admitted it did not analyze or estimate the economic impact the guidance would have on consumers. Nor has it responded to a peer review study by Charles River Associates that found significant flaws in the CFPBês testing methods.
For more information on the CFPB issue and H.R. 1737, as well as a direct electronic link to your member of Congress, visit www.nada.org/cfpb.Download Bulletin PDF