I try to sit back and look at the issues that are most pressing in our industry and how our industry is dealing with them. But it has seemed like Groundhog Day for the last three years as the Consumer Finance Protection Bureau has taken dead aim at car dealers and lenders. The CFPB remains the preeminent threat to our industry and business model. And so it goes again this month...
I have written about transparency in the Consumer Finance Protection Bureau's processes in this space before, but evidence against this agency continues to mount. Investor's Business Daily recently wrote:
In a series of internal documents obtained by American Banker magazine, Consumer Financial Protection Bureau officials acknowledge that the "disparate impact" and "proxy" methodology used to investigate car lenders for racial bias hypes the evidence. Yet they say they prefer that to underestimating bias.It continues:
But recently uncovered documents show that the assumptions that Obama's race bullies make while sifting through the limited auto loan data are even wilder than the ones they make against mortgage lenders, which already have forked over $100 billion to the government.You can read the entire opinion here.
In July, the House Financial Services Committee passed NADA-backed H.R. 1737 to rescind the CFPB's flawed auto finance guidance that would limit or eliminate a customer's ability to receive a discounted auto loan in the showroom. The bill, which passed by a bipartisan vote of 47-10, has increased momentum with 133 cosponsors (76 Republicans and 57 Democrats). H.R. 1737 will likely come up for a vote on the floor of the House of Representatives this fall and will likely be a priority at our Washington Conference.
Consumers Tell Their Stories of Saving on Finance at the Dealership
The stories of real consumers who saved money by financing new vehicle purchases through local dealerships are at the center of an initiative by NADA to showcase the true economic value of dealer-assisted financing. Through video testimonials and a new website NADA is bringing the voices of consumers back into the debate over dealer-assisted financing. Dealers have been fighting to preserve the fiercely competitive, pro-consumer financing model ever since it came under threat from the CFPB in 2013.
I encourage you to take a look at these powerful videos!
NADA Announces Keynote Speakers for 2016 Convention
On Friday, April 1, comedian and entertainer Jeff Foxworthy and 2015 NADA Chairman Bill Fox will address the convention. On Saturday, April 2, Mike Allen, Politico's chief White House correspondent, will moderate a panel session with Karl Rove, former deputy chief of staff and senior advisor to President George W. Bush, and Howard Dean, former governor of Vermont and former chairman of the Democratic National Committee. Incoming NADA Chairman Jeff Carlson will also speak. On Sunday, April 3, Peyton Manning, quarterback for the Denver Broncos, will provide an inspirational address.
ICYMI (In Case You Missed It…)
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