The U.S. House of Representatives recently passed a financial reform bill, the Financial CHOICE Act, which was applauded by the National Automobile Dealers Association (NADA) last week.
The act would nullify Consumer Financial Protection Bureau (CFPB) guidance on indirect auto financing. CFPB wanted to eliminate dealers’ ability to offer discount credit.
Under the legislation, CFPB would also be required to make available to the public all studies as well as study costs and the impacts of the guidance, and provide public notice and comment before issuing new auto-financing guidance.
Additionally, CFPB would be under the regular congressional appropriations process for the first time. NADA has long supported such a move.
“America’s franchised new-car dealers have always been on the side of our customers, which is why we have so strenuously opposed the CFPB’s anti-consumer guidance that would have raised the cost of car and truck loans, and pushed otherwise-creditworthy customers out of the auto credit market altogether,” NADA Chairman Mark Scarpelli said. “And we will continue to be on the side of our customers by urging Congress to get this legislation across the finish line, and by continuing to promote the voluntary NADA/NAMAD/AIADA Fair Credit Compliance Program that effectively manages fair-credit risk while preserving discounts on credit for consumers.”