Blue Dogs Back Maintaining Affordable Auto Credit for Consumers
WASHINGTON – The Blue Dog Coalition overwhelmingly supports H.R. 1737, the Reforming the CFBP Indirect Auto Financing Guidance Act. The bill seeks to fix a problematic Consumer Financial Protection Bureau (CFPB) policy that would make it difficult for auto dealers to discount interest rates for their customers. As most consumers obtain financing credit through their car dealers, this policy could decrease competition and increase costs, hurting, rather than helping, consumers.
“To effectively stop discrimination in consumer lending, the Bureau needs to be transparent in its methodology and rulemaking,” Congressman David Scott (GA-13) said. “The vague and opaque process used to create the Bureau’s guidance fails to address a real problem of discrimination. This bill will empower the bureau to help real victims and keep future costs down for all borrowers.”
“This CFPB rule would make it much tougher for auto dealers to make loans to folks. We’re simply telling the CFPB to go back to the drawing board, take into account stakeholder input before handing down regulations and make the process transparent,” said Kurt Schrader (OR-05). “This is what government agencies should be doing in the first place before issuing rules—doing their research and talking to those who would be affected.”
The bipartisan legislation has 166 cosponsors, including 65 Democrats, and industry groups including the National Automobile Dealers Association, National Independent Automobile Dealers Association, American Financial Services Association, American International Automobile Dealers Association, Alliance of Automobile Manufacturers, Recreation Vehicle Industry Association, National RV Dealers Association, National Auto Auction Association and Motorcycle Industry Council.
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