CFPB and Dealer-Assisted Financing

Dealer-Assisted Auto Financing Should Remain Accessible and Affordable
Action by the CFPB Will Increase Costs and Decrease Access for Car Buyers

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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)


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 has attempted to fundamentally change and regulate the $783 billion auto loan market via informal “guidance” without prior public comment or hearing; answering specific questions by Congress from both sides of the aisle to justify this policy change; and first analyzing the impact of its guidance on consumers.  With the CFPB’s actions likely to raise the cost of credit for consumers, Congress must exercise its oversight role to demand greater transparency from this agency.

Key Points

• NADA strongly opposes any form of discrimination in auto lending.

• The CFPB issued “guidance”, without prior public comment or hearing, and without following the standard rulemaking process that threatens to eliminate the ability of dealerships to discount the interest rate offered to customers.

• The Bureau has failed to provide analysis to substantiate its auto finance guidance despite bipartisan calls for transparency from Congress, including two congressional oversight hearings and ten letters from both Democrats and Republicans.

• The CFPB released this guidance without studying the impact of its actions on consumers.  According to Fitch Ratings, the CFPB’s drive to eliminate “meet or beat” financing offered by dealers “will likely raise lender regulatory costs in 2014.”  Higher regulatory costs result in higher costs for consumers, which could price lower income consumers out of the credit market.
Read the full NADA issue sheet 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 No response
to date
10. Rep. Hensarling, March 7, 2014 No response
to date
11. Rep. Bachus, April 1, 2014 No response
to date

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)