NADA to participate in FTCs inquiry into dealer F&I practices

NADA to participate in FTCs inquiry into dealer F&I practices

The Federal Trade Commission (FTC) will commence a series of informal discussions next month to explore consumer protection issues relating to the purchasing and financing of cars and trucks. It has requested that NADA representatives participate as industry experts. (See related story in March 8, WANADA Bulletin).

The first of the meetings will take place in Detroit on April 12, 2011, and are authorized under newly expedited rulemaking powers that it received under the Finance Reform law. In particular, FTC regulators are seeking to expand their understanding of the car buying process and vehicle financing issues to determine what additional regulations, if any, may be necessary to protect consumers.

“NADA will present a strong case that dealer-assisted financing increases access to, and decreases the cost of, credit for car buyers,” said Gary Reynolds, chairman of NADA’s Regulatory Affairs Committee. “Additionally, dealer representatives will highlight both the actions of dealers and NADA to increase financial literacy among consumers as well as our long-standing and ongoing efforts to promote regulatory compliance among franchised dealers,” Reynolds said.

NADA spearheaded the dealer effort in Congress last year to ensure that dealer F&I operations did not become part of the Finance Reform law and the bank-related regulatory reach of the newly created Bureau of Consumer Finance Protection.