July-2013-03 - Greater Cincinnati Automobile Dealers Association


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

CFPB Responds to Letter from House Democrats

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.

This letter follows a separate letter from 13 Financial Services Committee Democrats, led by Rep. Terri Sewell (D-Ala.) also seeking information from the Bureau on the March guidance. Combined, the signers of the two letters represent a majority of the Financial Services Committee. CFPB Director Richard Cordray responded to the Sewell letter providing virtually no new information on the background information and methodology to explain the Bureau’s conclusions, despite a specific request. Click here for the letter from CFPB Director Cordray:http://images.magnetmail.net/images/clients/NADA/attach/CFPB_Letter_on_Auto.pdf

The other Republican signers of the Bachus letter are Reps. Michele Bachmann (Minn.), Andy Barr (Ky.), John Campbell (Calif.), Shelley Moore Capito (W.Va.), Tom Cotton (Ark.), Sean Duffy (Wis.), Stephen Fincher (Tenn.), Scott Garrett (N.J.), Michael Grimm (N.Y.), George Holding (N.C.), Bill Huizenga (Mich.), Robert Hurt (Va.), Walter Jones (N.C.), Peter King (N.Y.), Steve King (Iowa), Jack Kingston (Ga.), Tom Latham (Iowa), Blaine Luetkemeyer (Mo.), Tom Marino (Pa.), Patrick McHenry (N.C.), Mark Meadows (N.C.), Gary Miller (Calif.), Mick Mulvaney (S.C.), Randy Neugebauer (Texas), Steve Pearce (N.M.), Robert Pittenger (N.C.), Dennis Ross (Fla.), Keith Rothfus (Pa.), Ed Royce (Calif.), Steve Stivers (Ohio), Steve Stockman (Texas), Marlin Stutzman (Ind.), Ann Wagner (Mo.) and Lynn Westmoreland (Ga.).

Click here for the Bachus letter: http://images.magnetmail.net/images/clients/NADA/attach/CFPB_Auto_Lenders_Letter.pdf