Sen. Warren earns 4 Pinocchios from Wash. Post Fact Checker
The Washington Post Fact Checker gave Senator Elizabeth Warren (D-Mass.) its worst rating of 4 Pinocchios for saying that auto dealer markups cost consumers $26 billion a year. Warren has said she will push to reverse dealersê exemption from regulation by the Consumer Financial Protection Bureau (CFPB).
Warren used the $26 billion figure in a recent speech at Bard College, drawing from a report by the Center for Responsible Lending, which describes itself as a nonpartisan, nonprofit organization that fights predatory lending. After some digging, the Fact Checker found that the reportês figures were from 2009, in the middle of the Great Recession, and were based on a survey by a subprime lending association so the figures were for subprime loans only. Even then, the figures from the survey didnêt match up with the reportês figures.
The Post uncovered many more layers of confusing and misleading facts that arenêt really facts. Suffice it to say that the article doesnêt put Senator Warren and her fight against dealers in a good light. NADA used the occasion to urge dealers to call their Member of Congress (especially if s/he is a Democrat) and ask them to cosponsor HR 1737, which would rescind the CFPBês misdirected auto finance guidance to lenders.Download Bulletin PDF