Thursday, November 16, 2017

November 2017 SDADA Column

Ding Dong! The Witch is dead. Which old Witch? The Wicked Witch!
Ding Dong! The Wicked Witch is dead.
 -Wizard of Oz

Yes the "witch" is dead. Consumer Finance Protect Bureau Director Richard Cordray announced his resignation from the post by the end of November. It seems like my entire term as your NADA Director has been dotted with conflicts with Cordray and his overreaching agency.

Cordray has been on a crusade to eliminate our ability to discount interest rates for our customers ever since he took command of the most unaccountable agency in Washington. His legacy at the CFPB will be that of ruling by extortion and coercion.

I sat in a meeting in June of 2016 where he arrogantly told dealers and auto lenders that he was going to reduce our "dealer markup" (finance reserve) to a flat fee. He had no fear of retribution from anyone because he was accountable to no one!

Because of a specific exclusion for regulation of automobile dealers in the Dodd-Frank law that created the CFPB, Cordray has sought to get at dealers by overstepping its authority on regulating auto lenders since day one.

If you can't tell, I am rejoicing in this news and wishing the entire agency could die a quick death. Short of that, the best thing that can happen is for President Trump and Congress to take this opportunity to overhaul the CFPB and create some accountability.

I'm am now considering how to celebrate the demise of the "wicked witch". Perhaps some (amber) spirits would be in order!