NADA Statement Concerning CFPA
WASHINGTON (March 10, 2010) - The following is a statement from Ed Tonkin, chairman of the National Automobile Dealers Association, concerning a letter from the Department of Defense to the Treasury Department on auto lending:
“Auto dealers should not be included in the proposed CFPA. When it comes to auto financing, the financial practices at issue are already illegal.
“NADA, however, shares the concerns expressed in the letter from Under Secretary Stanley regarding financial problems and challenges encountered by service members in today's stressful environment.
“It's important to keep in mind that each of the practices cited in the letter are prohibited by current law, so it is unclear what benefits service members would gain from the creation of a new bureaucracy.
“It is noteworthy that the letter recognizes that CFPA protections should only be provided if they 'would not limit access to legitimate products.' Creating new regulatory mandates on top of the numerous federal and state requirements that already govern auto financing will only drive up costs, limit vehicle financing options and, for many consumers, effectively eliminate their ability to obtain financing to meet their vehicle needs.”