Auto dealer regulation has been on the minds of House Democrats of late, or more particularly 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 to the bill that would have really expanded the CFPA’s oversight over car dealers.
NADA is apparently 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 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, compromise would go against President Obama’s direct demand that no special conditions be made when it comes to the CFPA’s jurisdiction.
What Obama wants, Chris Dodd delivers
As created by Democratic Sen. Chris Dodd of Connecticut, the proposed auto dealer regulation will 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 vehicle.”
Unfair and deceptive practices
Ridding the industry of unfair and deceitful practices is the heart and soul of the Dodd bill, which NADA finds completely 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,” according to Automotive News. Today a vote for either House or Senate approach occurs. By early next week, the version will leave committee and go to the House and Senate for final approval. The final step will be to obtain the president’s signature. What is going to be 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
