By NADA Legislative Affairs
Legislative efforts to significantly reform the Consumer Financial Protection Bureau (CFPB) have resumed in Congress. On Wednesday, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) introduced the Financial CHOICE Act, H.R. 10, a comprehensive financial reform bill.
H.R. 10 includes a provision that is virtually identical to H.R. 1737, a NADA-backed bill from the last Congress, which overwhelming passed the House by a vote of 332-96. This legislation would nullify the CFPB’s guidance on indirect auto financing, which attempted to eliminate or severely constrain dealer reserve. H.R. 10 also requires the Bureau to provide for public notice and comment before issuing final guidance, to make publicly available on its website all studies, data, methodologies or other information relied upon to produce the guidance, and to conduct a study on the costs and impacts of the guidance. The legislation also brings the CFPB under the regular congressional appropriations process for the first time, which is another reform NADA has long supported.
NADA applauds Chairman Hensarling for including these measures in H.R. 10.
“Access to affordable credit is essential to customers and their dealers,” said NADA President and CEO Peter Welch. “We look forward to Congress passing these provisions and reining in CFPB attempts to eliminate consumer discounts in the showroom.”
This legislation is expected to be debated next week by the House Financial Services Committee.