CFPB and Dealer-Assisted Financing

Support Increased Transparency and Accountability for the CFPB
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Fact Sheet
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Dealer-assisted financing is arranging an auto loan or lease with a bank, credit union or finance company through a dealership.”

Watch now
NADA's 2013 chairman, Dave Westcott, addresses CFPB and the essential services provided by franchised dealers. (Oct. 16, 2013)

Watch now View Westcott's full speech (Oct. 16, 2013)

Watch now 2013 chairman discusses how CFPB 'guidance' could hurt consumers (June 13, 2013)

NADA Press Releases & Resources 

• NADA Statement Before the House Financial Services Committee on CFPB (April 8, 2014)

CRL's 2011 Analysis of Dealer-Assisted Financing is Flawed and Untrue (Feb. 27, 2014)

CRL’s Flawed 2014 Report on Auto Financing (Feb. 27, 2014)

NADA Issues Statement on Joint CFPB/DOJ Enforcement Announcement (Dec. 20, 2013)

CFPB Auto Lending Forum Raises More Questions than Answers (Nov. 14, 2013)
» Opening Statement by NADA's Chief Regulatory Counsel Paul Metrey
Senators Seek Answers from CFPB on ‘Guidance’ That Threatens Consumer Benefits of In-Dealership Financing (Oct. 30, 2013)

NADA Chairman Warns CFPB’s Lack of Transparency Could Hurt Consumers (Oct. 16, 2013)

Dealers Seek Greater CFPB Transparency on Auto Finance (Sept. 20, 2013)

Articles from 'NADA Headlines' 

• Dealerships, Lenders Bolster Compliance Staffs in Face of CFPB Crackdown (Automotive News, April 2, 2014)

• House Financial Services Committee Chairman to CFPB on Indirect Auto Investigations: Slow Down. Pull Over. And Show Us Some ID. (CFPB Monitor, March 11, 2014)

Opinion: The CFPB and the Emperor's New Clothes (Dealer Communications, March 4, 2014)

• NADA Supports Efforts to Reform CFPB (NADA Legislative Affairs, Feb. 27, 2014)

• U.S. Chamber of Commerce Calls for Detailed Auto Lending Rules From the CFPB (Automotive News, Feb. 20, 2014)

• Commentary: What the Indirect Auto Finance Agreement Between CFPB and Ally Means to Your Dealership (Dealer Communications, Feb. 5, 2014)

Ally Won't Be a 'Trojan Horse': Lender Sticks with Dealer Reserve, Defies CFPB (Automotive News, Feb. 3, 2014)

(More articles below)

Cosponsor H.R. 4811 “The Bureau Guidance Transparency Act”

The Consumer Financial Protection Bureau (CFPB) issued guidance that threatens to eliminate dealers’ flexibility to discount the interest rate offered to consumers to finance vehicle purchases.  The CFPB is attempting to fundamentally change the $783 billion auto loan market without prior public comment or hearing, answering specific bipartisan questions by Congress to justify this policy change, or analyzing the impact of its guidance on consumers.  With the CFPB’s actions likely to raise the cost of credit for car buyers, Members of Congress should cosponsor H.R. 4811 to make the Bureau more transparent and accountable when issuing future guidance.

NADA supports H.R. 4811, a bill that would require the CFPB to be more transparent and accountable when it issues guidance.  The bill adds safeguards such as requiring prior public notice and greater transparency of future Bureau guidance.  In addition, the bill would rescind the auto finance guidance, but would allow the CFPB to reissue it with transparency and public review.

Key Points

• NADA strongly opposes any form of discrimination in auto lending and has distributed a model Fair Credit Compliance Policy to reinforce dealers' commitment to legal compliance and fair treatment of all customers, while maintaining a dealer’s ability to discount interest rates, which benefits consumers.

• The CFPB, in its attempt to significantly alter the auto finance market, issued guidance without prior public comment, hearing, and transparency.

• The Bureau has used the guidance process as a substitute for rulemaking. The CFPB’s attempt to force fundamental changes to the $783 billion auto loan market, which will have a major impact on consumers, should not be done without transparency.

Coalition Letter
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• H.R. 4811 merely requires minimal safeguards such as a public comment period and public access for documents supporting a guidance; it does not change issuing guidance into a rulemaking process. For example, the bill does not require the time consuming and more rigorous provisions of a rulemaking, such as publishing in the Federal Register, a cost benefit analysis, the ability of affected parties to contest a rulemaking, etc. 
Read the full NADA issue sheet here.
See the vote tally on H.R. 4811 here.

Letters to CFPB from Members of Congress

  CFPB Response:
  1. House Financial Services Committee Democrats (Sewell) , May 28, 2013 June 20, 2013
  2. House Financial Services Committee Republicans (Bachus) , June 20, 2013 Aug. 2, 2013
  3. Rep. Bachus follow-up letter ,
Sept. 24, 2013
Nov. 4, 2013
  4. House Democrats (Hanabusa, Cicilline and Wilson), Oct. 29, 2013 Feb. 6, 2014
  5. Bipartisan Senators (Portman-Shaheen) , Oct. 30, 2013 Nov. 4, 2013
  6. Sen. Baucus, Nov. 12, 2013  No response
to date
  7. Rep. Luetkemeyer , Nov. 15, 2013 Jan. 23, 2014
  8. Sen. Merkley, Nov. 19, 2013 No response
to date
  9. Bipartisan Fla. Delegation, Dec. 18, 2013 Feb. 20, 2014
10. Rep. Hensarling, March 7, 2014 No response
to date
11. Rep. Bachus, April 1, 2014 May 1, 2014

CFPB's Responsiveness

Click to enlargeClick on the image at left to see a quick summary of CFPB's responsiveness to inquiries to date.

For more information, contact:
NADA Regulatory Affairs at, (703) 821-7040

NADA Legislative Affairs at, (202) 547-5500, toll-free: (800) 563-1556

More Articles from 'NADA Headlines'  

NADA Issues Statement on Joint CFPB/DOJ Enforcement Announcement (NADA, Dec. 20, 2013)

A Bipartisan Majority of Florida House Members Question Consumer Bureau's Auto Lending Changes (NADA, Dec. 19, 2013)

Editorial: Obama Consumer Bureau Lacks Data Supporting Charges of Car Lender Bias (Investor's Business Daily, Dec. 4, 2013)

Dealers Dig In to Defend Auto-Financing System (WardsAuto, Dec. 11, 2013)

CFPB Auto Lending Forum Raises More Questions than Answers (NADA, Nov. 16, 2013)

Regulators May Rethink Methods Used in Discrimination Investigations (American Banker, Nov. 15, 2013)

CFPB Auto Lending Forum Raises More Questions than Answers (, Nov. 14, 2013)

Lender Group, Aiming to Refute CFPB, Launches Auto Finance Study (Automotive News, Nov. 14, 2013)

Goal for CFPB Chief: Calm Conflict on Loans (Automotive News, Nov. 14, 2013)

CFPB Chief Concedes Need for Balance in Auto-Loan Oversight (Automotive News, Nov. 13, 2013)

CFPB's Richard Cordray to Testify at Senate Hearing (, Nov. 12, 2013)

CFPB Feels the Pressure on Auto Loans (Politico, Nov. 5, 2013)

Senators Raise Concerns About CFPB Auto Fair Lending Guidance (CFPB Monitor, Oct. 31, 2013)

Senators Seek Answers from CFPB on ‘Guidance’ That Threatens Consumer Benefits of In-Dealership Financing (NADA Legislative Affairs, Oct. 30, 2013)

Congress Puts Major Focus on CFPB’s Lack of Transparency (NADA Legislative Affairs, Nov. 1, 2013)

Senators Question Bias Claim on Car Loans (The Wall Street Journal, Oct. 30, 2013)

Opinion: Consumer Protection Bureau Bad for Business (The Detroit News, Oct. 29, 2013)

AutoNation's Jackson Blasts CFPB for Being 'Determined' to Find Lending Bias (Automotive News, Oct. 24, 2013)