An auto dealer exemption appears to be the result of National Automobile Dealers Association lobbying against the prospect of lending oversight by the newly formed Consumer Financial Protection Bureau. Bailey Woods, spokesman for NADA, told Automotive News that Congress is headed in the right direction if their aim is to save dealers administrative headaches and conserve consumers money. Considering what NADA lobbyists have won so far, auto dealers appear to have good reason to celebrate.
Post resource: Congressional committee agrees on auto dealer exemption by Car Deal Expert
Auto dealer exemption: So long, CFPB
The Congressional committee’s decision on the auto dealer exemption puts car loans in a different sphere than credit cards, mortgages and other forms of consumer credit. Dealer-financed auto loans bad credit will also continue without interruption, but the CFPB will exert their influence on the financial institutions that fund car dealer finance corps. The Federal Trade Commission nevertheless supervises auto dealers, but those in Congress who sought to bring dealer financing under CFPB scrutiny are dissatisfied with that system, as it takes the FTC as long as eight years to enact significant change. The rule system governing the FTC is much a lot more involved the rule set to which other government agencies must adhere, which may explain the inefficiency of the former.
Rep. Barney Frank bemoaned the lack of votes
Barney Frank and other House Democrats wanted auto dealers to be put on a leash, as did President Obama, the Pentagon, military families, consumer rights and civil rights grounds, indicates Automotive News. Yet NADA’s lobbying turned things around for auto dealers, particularly considering where the finance bill started. But Barney Frank and business didn’t go away empty handed: their concession was the FTC could now get things done in slightly yes than eight years. This still will not protect consumers from some of the practices of dealer finance that some call shady. Auto dealers, on the other hand, call it making a living.
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