NADA got a step closer last week to a goal it has pursued since 2013, to rescind the auto loan guidance issued by the Consumer Financial Protection Bureau (CFPB). Now that the Senate voted to rescind the legislation, the bill will go to the House of Representatives for a vote this week. NADA urges dealers to call their member of Congress and ask them to vote “yes” on S.J. Res. 57.
The Trump administration has already indicated its support for the bill as part of its effort to curb federal regulations, a point that Senate Majority Leader Mitch McConnell echoed during Senate debate on the legislation.
“The goal here is simple,” McConnell said. “We want to protect consumers and job creators from needless interference by the federal bureaucracy.”
The White House said the CFPB guidance “limits the ability of auto dealers to offer auto loans to their customers and was not issued pursuant to notice-and-comment rulemaking.” The White House noted, additionally, that the Dodd-Frank Act explicitly bars the CFPB from regulating auto dealers. If, as expected, President Trump signs the legislation, consumers will have more options for auto financing.
All four senators from Maryland and Virginia voted against S.J. Res. 57. Only one Democrat in the Senate voted for the bill.
NADA is still urging dealers to use its Fair Credit Compliance Policy, developed with the National Association of Minority Automobile Dealers and the American International Automobile Dealers Association, to ensure compliance with fair lending rules.
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