During the week of May 7, the House of Representatives is expected to vote on S.J.Res. 57, a joint resolution to rescind the Consumer Financial Protection Bureau’s (CFPB) flawed 2013 auto finance guidance. This pro-dealer, pro-consumer legislation passed the Senate on April 18 by a vote of 51-47. President Trump is expected to sign S.J.Res. 57 into law if passed by the House. House passage of S.J.Res. 57 would end the CFPB’s attempt to eliminate dealer reserve and consumer discounts on auto loans.
Despite having no jurisdiction over auto dealers, the CFPB attempted to change the $1.1 trillion auto finance market without a single public hearing or any public comment. The agency tried to pressure lenders, via “guidance,” to change the way dealers are compensated to flat fees that would eliminate a dealer’s ability to discount credit for their customers. With the CFPB’s actions likely to raise the cost of credit for car buyers, dealers should call their Representative TODAY and ask them to vote for S.J.Res. 57.
In 2015, with overwhelming bipartisan support, the House passed similar legislation, H.R. 1737, which would have rescinded the guidance. The bill received support from 88 House Democrats. NADA expects these Democrats to face significant pressure from anti-dealer groups to reverse their position based on procedural arguments which are inaccurate. These House Democrats should hear directly from auto dealers reminding them of their past support to ensure a “yes” vote on this vital legislation.
With the House in recess next week, dealers are encouraged to contact their members of Congress directly. Please call NADA Legislative at 202.547.5500 or click here for more information on the CFPB’s flawed guidance.