NADA, House committee ask CFPB for details of loan analysis
NADA and a Congressional House committee are demanding details from the Consumer Finance Protection Bureau to back up its statement that dealers sometimes discriminate against minorities, even if unintentionally, in the rates they offer for auto loans.
The CFPB issued guidance a year ago for auto lenders, whom CFPB regulates, and signaled it wanted to end dealer discretion in setting dealer reserve. But the agency has never revealed the details of its analysis that found discrimination in auto loan rates, despite requests from NADA and members of Congressional committees in both houses.
NADAs latest call for information came during a conference in Washington last week organized by the U.S. Chamber of Commerce, reports Automotive News. At the meeting, CFPB deputy director Steve Antonakes said the agency has five regulatory tools: rulemaking; consumer complaints; supervision and examination; enforcement; and consumer education. But Andy Koblenz, general counsel for NADA, countered that CFPB relies too heavily on enforcement.
A few days before the Chamber conference, the House Financial Services Committee sent a letter to CFPB director Richard Cordray demanding details of the agencys analysis of auto loans and how it came up with the finding of discrimination. Although the committee gave the agency a March 13 deadline, it had still not received a reply a week later, according to Automotive News.
Correspondingly, the CFPB appointed attorney Jeffrey Langer as its liaison with the auto finance industry. Langer was most recently senior counsel at Macys, Inc., a job that included compliance for credit card programs. At the CFPB, Langer will also be in charge of student loans and other consumer lending.Download Bulletin PDF