The National Automobile Dealers Association (NADA) supports a resolution which nullifies a Consumer Financial Protection Bureau (CFPB) bulletin regulating in-direct auto lenders for compliance with the Equal Credit Opportunity Act.
The resolution, which was signed into law Monday by President Trump, also prohibits the reissuing of a substantially similar rule unless authorized by law.
The bulletin was a misguided attempted by Obama Administration officials at the CFPB to issue a solution in search of a problem, Acting CFPB Director Mick Mulvaney said. Congress has corrected those actions, he said.
“This is a great day for consumers, as Congress and the president have helped to preserve their ability to receive auto loan discounts from local dealerships” Peter Welch, NADA president and CEO, said. “NADA congratulates the U.S. House and Senate for their focus and perseverance on this issue and the president for signing the new law to protect consumers.”
More than 85 percent of the nearly 50,000 new cars and trucks sold daily are financed, most through the dealership. Dealerships often offer customers discounts. The CFPB bulletin would have ended these discounts.
The bulletin, issued in October 2013 and went into effect January 2014, also establishes mortgage rules. House Bill 1737, introduced in 2015, attempted to overturn the CFPB’s guidance following support in the House but was never taken up for consideration in the U.S. Senate.