U.S. dealer association leaders convene for NADAês Washington Conference
Legislation introduced to curb regulatory over reach by CFPB into auto lending
Topping the national government relations agenda for dealers this year is legislation NADA introduced known as the Reforming CFPB Indirect Auto Financing Guidanceês Act, HR 5403. The purpose of the measure — which NADA says enjoys bipartisan support in Congress — is to require the Consumer Finance Protection Bureau to follow a transparent process when issuing auto finance guidance to the financial institutions it regulates. Moreover, HR 5403 is designed to force CFPB to become accountable to lawmakers, no less than those it regulates and the public that is impacted by the agencyês regulations. CFPBês guidance to the banks it regulates on indirect auto loans they originate through dealers has been for these banks to reevaluate how they compensate dealers. The reason, according to CFPB, is to discourage widespread discrimination against minorities which CFPB says dealers practice. (Since CFPB doesnêt regulate dealers as credit arrangers, but instead can only regulate banks.)
By requiring CFPB to proceed in their regulatory charge with due process of law, per HR 5403, the likelihood that allegations of dealers discriminating against minorities on auto loans would go away, like the specious and baseless allegations that they are.
Speakers at the conference included a stellar line up of members of Congress such as Steny Hoyer (D-Md.), House minority whip, who WANADAês representative met and brought into the meeting. Other speakers included: Rep. Jamie Herrera Beutler (R-Wa.), Sen. Mike Kelly (R-Pa.)–an automobile dealer–Sen. Jerry Moran (R-Ks.), and Rep. Marlin Stutzman (R-In.).
Representing WANADA at the Washington Conference were Danny Korengold, chairman of the board and Tamara Darvish, NADA director for Metropolitan Washington. WANADA was additionally represented by Jack Fitzgerald and Geoff Pohanka, along with John OêDonnell, WANADA CEO and Gerard Murphy, counsel.
WANADA dealer leaders and senior staff joined their counterparts from state and major metropolitan dealer associations from across the country who were in town last week for NADAês Annual Washington Conference.
The dealer associations, about 75 in total, are affiliated with the Automotive Trade Associationsê network (ATAE) that works in tandem with NADA on grass roots efforts which the visiting dealer association leaders last week put to good use by going up to Capitol Hill in large number to visit their members of Congress in the House and Senate.
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