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 recover 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.
For auto dealer regulation, NADA is lobbying hard
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 very vocal in his opposition to Senate changes that went against what had been perceived to be “sensible bipartisan compromise.” Whatever 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 regarding “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 a lot more difficult for “millions of Americans (to discover) an affordable way to finance a car.”
Unfair and deceptive practices
Ridding the industry of deceptive practices is the essence of the Dodd bill, which NADA finds completely untenable. Last month, Brownback’s pitch 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 either the House or Senate approach occurs 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 can be to get the president’s signature. What will end up being in the future for America’s auto dealers?
Sources
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
