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 hamper auto dealers' ability to recuperate by limiting their ability to continue offering dealer-assisted financing. Led by New York Reps. Bill Owens and Mike McMahon, the Democrats thought that they might have achieved an acceptable bipartisan compromise – until now. It was reported by Automotive News that an additional provision was surreptitiously inserted into the bill that would have actually expanded the CFPA's oversight over car dealers.
Resource for this article: Auto dealer regulation - A failure to compromise by Car Deal Expert
NADA is 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 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." No matter what 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 – exactly 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 altered Senate version of the auto dealer regulation bill, claiming that it would it more difficult for "millions of Americans (to find) an affordable way to finance a vehicle."
Practices that are unfair and deceptive
Ridding the industry of unfounded and deceptive practices is the essence of the Dodd bill, which NADA finds entirely untenable. Last month, Brownback's proposal to grant dealer exemption from CFPA regulation had been 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 agreed-upon version will leave committee and go to the House and Senate for final approval. The last step will be to get the president’s signature. What is going to be the future for America’s auto dealers?
Sources of the article:
Automotive News (subscription may be required)
Sam Brownback views auto dealer regulation as anti-small business: