Auto dealer regulation continues to be on the minds of House Democrats of late, or a lot more specifically a lack thereof. Their belief is that the newly formed Consumer Financial Protection Agency (CFPA) would likely hamper auto dealers’ ability to recuperate during these trying financial times by limiting their ability to continue offering dealer-assisted financing. Led by New York Reps. Bill Owens and Mike McMahon, the Democrats thought they’d achieved a bipartisan compromise – until now. Automotive News reports that an additional provision was surreptitiously inserted to the bill that would have actually expanded the CFPA’s oversight over car dealers.
NADA is apparently lobbying hard for auto dealer regulation
The National Automobile Dealers Association (NADA) – which is the auto dealer lobby – is flexing its considerable lobbying muscles to bring lawmakers in line with the a lot more permissive House version of the auto dealer regulation bill. Kansas Republican Sen. Sam Brownback was vocal in his opposition to Senate changes that went against what was “sensible bipartisan compromise.” Whatever happens, compromise would go against President Obama’s request made that no special exceptions be made when it comes to the CFPA’s jurisdiction.
What Obama wants, Chris Dodd delivers
As constructed by Democratic Sen. Chris Dodd of Connecticut, the proposed auto dealer regulation would allow the CFPA to write binding rules that car dealers would have to follow concerning “credit discrimination, credit disclosure, financial privacy and credit-report accuracy,” as outlined by Automotive News. NADA spokesman Bailey Woods disparaged the Senate version of the bill, claiming that it would it more difficult for “millions of Americans (to discover) an affordable way to finance a automobile.”
Barring unfair and deceptive practices
Ridding the industry of unfounded and deceitful practices is the heart and soul of the Dodd bill, which NADA finds entirely untenable. Last month, Brownback’s proposal to grant dealer exemption from CFPA regulation was approved 60-30 as “a non-binding recommendation to Senate negotiators,” writes Automotive News. A vote for either the House or Senate approach occurs today. By early next week, the agreed-upon version will leave committee and then will go to the House and Senate for final approval. The final step can be to get the president’s signature. What will the future hold for America’s auto dealers?
More information on this topic
Automotive News (subscription may be required)
autonews.com/apps/pbcs.dll/article?AID=/20100623/RETAIL07/100629945/1203
Sam Brownback views auto dealer regulation as anti-small business:
youtube.com/watch?v=jv8lgKa_yAA
