July 2013 - Greater Cincinnati Automobile Dealers Association

July 2013

Back to News Archive 

Legislature Says “No” to Sales Tax Expansion on Services

Key Legislative leaders cite OADA lobbying efforts and dealer grassroots support as critical components of abandoning Sales Tax Expansion on Services in the State Budget. State Budget tax package includes the following for dealers[…]­ Read More

CFPB Guidance Questioned by Industry and Lawmakers
From NADA Chairman’s Column. Link to Original Article

Ever since the Consumer Financial Protection Bureau (CFPB) released its fair lending guidance to indirect auto lenders on March 21, dealers and lenders have questioned the basis for the guidance—and now Washington lawmakers are as well.The foundation for the CFPB’s guidance wholly rests on a disputed theory of liability called “disparate impact.” Under this theory, if the auto finance system results in minorities paying more for credit than non-minorities in the same credit tier, then unintentional discrimination is[…] Read More

House Financial Services Republicans Seek Information from CFPB on Auto Lending Guidance
From NADA Director’s Update

Led by Rep. Spencer Bachus (R-Ala.), 35 Republicans, including 27 members of the House Financial Services Committee, sent a letter to the Consumer Financial Protection Bureau (CFPB) regarding its March 21 fair lending guidance. The letter requests all relevant documentation supporting the CFPB’s assertion that there may be disparate impact discrimination in indirect auto financing. The letter also requests the studies the CFPB relied on to support its attempt to pressure indirect finance sources to compensate dealers for arranging financing with a flat fee instead of allowing consumers to negotiate competitive rates with dealers. Read More

Franchised Dealers Deliver Best Results 
By Peter Welch – NADA

Franchised auto dealers are on track to sell more than 15 million new cars and trucks this year, including a half-million electric, natural gas, hybrid and other alternative technology vehicles. These Main Street businesses — the backbone of their communities — are leading America’s economic recovery. Franchised auto dealers employ nearly a million people, provide good jobs that can’t be shipped overseas and engage in robust market competition. Read More

What You Need to Know About the Visa/MasterCard Merchant Fee Settlement
By Charlie Howard – GCADA

Perhaps you have already read about this but I think it is worth mentioning just in case. A number of merchants brought a class action lawsuit against Visa/MasterCard related to merchant fees. After lengthy litigation a settlement has been reached and is available for merchants who accepted Visa and MasterCard Credit and Debit Cards anytime between January 1, 2004 and November 28, 2012. At stake is an estimated $6 billion in damages that will be divided pro-rata between merchants. It is estimated that for every $1 million in sales, you are entitled to approximately $800 in damages. For many dealers this could be a substantial sum. Read More


 The Ohio sales and use tax rate on services and retail sales made on or after Sept. 1, 2013will be 5.75%, an increase of .25% from the existing state rate of 5.50%. This means that rates (including local “piggyback” taxes) will increase by .25% in all 88 Ohio counties.  Read More

“Do I Have To Hire A Criminal With Bad Credit?”
By Tillman Coffey – Fisher & Phillips LLP – Link to Original Article

The answer to whether an employer may refuse to hire someone with a criminal record or bad credit is not as simple as you might think. Two recently-filed lawsuits by the EEOC alleging that employers’ criminal-conviction policies resulted in race discrimination are just the most recent reminder that using a one-size-fits-all approach to criminal backgrounds is risky. Read More

OSHA Targets Body Shops With New Enforcement Program

Last month, the Occupational Safety and Health Administration (OSHA) announced a new National Emphasis Program (NEP) aimed at helping to protect workers from the health effects (including asthma and sensitization) of occupational exposure to isocyanates, a class of chemicals sometimes found in automotive refinish systems. The NEP specifically targets auto body shops. The NEP will involve a combination of targeted inspections, employer outreach, and compliance assistance. Read More