Auto dealer regulation is on the minds of House Democrats of late, or 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 an acceptable bipartisan compromise – until now. As outlined by Automotive News, an additional provision was surreptitiously inserted to the bill that would have really expanded the CFPA’s oversight over car dealers.
NADA is lobbying hard for auto dealer regulation
The National Automobile Dealers Association (NADA) 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 had been perceived to be “sensible bipartisan compromise.” Whichever ends up happening, compromise would go against President Obama’s direct request that no special exceptions be made when it comes to the CFPA’s jurisdiction.
Chris Dodd delivers – what Obama wants
As crafted 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,” Automotive News reports. NADA spokesman Bailey Woods disparaged the Senate version of the bill, claiming that it would it more difficult for “millions of Americans (to find) an affordable way to finance a car.”
Practices that are unfair and deceptive
Ridding the industry of unfair practices is the essence of the Dodd bill, which NADA finds entirely untenable. Last month, Brownback’s pitch 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 House or Senate will approach today. By early next week, the version will leave committee and go to the House and Senate for final approval. Obtaining the president’s signature will be the final step. What is going to be the future for America’s auto dealers?
Works cited
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
