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Dealer Alert: Senate Vote Today on Repeal of CFPB’s Flawed Auto Finance Guidance

Published April 16, 2018

All Dealers Should Call Their Senators now to urge a “YES” vote for S.J.Res. 57.  A close vote is expected – Senators need to hear from dealers NOW.

All Dealers Should Call Their Senators NOW to Urge a “YES” Vote for S.J.Res. 57

Today the U.S. Senate is expected to vote on S.J.Res. 57, a resolution that preserves the ability of dealers to discount auto loans for their customers. This legislation would disapprove a flawed 2013 Consumer Financial Protection Bureau (CFPB) “guidance” that pressures indirect auto lenders to eliminate the ability of local dealerships to offer discounted auto loans to their customers.

Dealers need to urge their Senators to vote “Yes” on S.J.Res. 57 NOW.

In 2013, despite Congress exempting most auto dealers from the CFPB’s jurisdiction under the Dodd-Frank Act (auto dealers are regulated by the Federal Trade Commission and other agencies), the CFPB issued “guidance” that threatened to take away a consumer’s ability to receive a discounted auto loan in the showroom. This flawed guidance should be disapproved. Access to affordable credit is essential to consumers, and the ability of a dealer to discount credit is often necessary to meet auto buyers’ needs.

Passage of S.J.Res. 57 is necessary because:

  • The CFPB guidance was issued without any prior notice, opportunity for public comment, or consultation with the federal agencies Congress authorized to regulate dealers.
  • The industry strongly supports fair-lending protections and has promoted a fair-credit compliance program based on a DOJ model that effectively manages fair-credit risk while preserving discounts on credit for consumers. S.J.Res. 57 would not affect fair lending statutes or implementing regulations.
  • Preserving discounts for c.onsumers keeps auto loans accessible and affordable. The CFPB admits it never analyzed the impact of its guidance on consumers. Subsequent analysis revealed that the guidance would increase auto credit costs, potentially push the marginally creditworthy out of the auto market and lessen competition.


To Find Your Senators click HERE, or call the U.S. Capitol Switchboard at 202.225.3121.

For more information or additional talking points, contact the NADA Legislative Office at 202.547.5500 or