BROAD BIPARTISAN VOTE IN FAVOR OF AGENCY OPENNESS, CONSUMER CREDIT FLEXIBILITY
WASHINGTON, D.C. -- Congressman Frank Guinta’s legislation to protect car buyers from higher loan rates received significant bipartisan support in the House of Representatives today.“I’m happy that both Democrats and Republicans have rallied around my bill, which would help qualified car buyers to purchase vehicles,” he said, announcing passage of hisCFPB Indirect Auto Financing Guidance Act, H.R. 1737.
More than 160 House members, including 65 Democrats, cosponsored his legislation, requiring the Consumer Financial Protection Bureau (CFPB) to rescind its plan to regulate the auto-financing market, a maneuver that 2010’s Dodd-Frank financial reform prohibits.“Middle-class families need today’s bill to lower expenses. Granite Staters traveling to work or looking for new jobs are depending on affordable transportation,” said Rep. Guinta, Manchester’s former mayor and a current member of the House Financial Services Committee.
“If the CFPB truly cares about policies in the best interests of consumers, the agency should reissue guidance that is clear, fair and respects due process,” said the Congressman, who explained the CFPB’s action could result in a higher flat rate for most car buyers. “My bill would open the CFPB’s data to neutral experts and the public, solicit comments according to normal procedure, and require more economic study of the CFPB’s rush to regulate an important economic sector.”
A number of consumer and industry groups support the New Hampshire congressman’s solution, which he introduced earlier in 2015, saying it would save Americans millions of dollars annually. The U.S. Consumer Coalition, National Automobile Dealers Association, Alliance of Automobile Manufacturers, Motorcycle Industry Council, American Financial Services Association and others have announced support. “I meet frequently with Granite State car dealers and buyers, as well as community lenders, who tell me the CFPB will ruin their businesses and budgets,” said Rep. Guinta (NH01).
He explained the CFPB’s guidance would harm many whom the agency claims to represent.“Minority dealers and buyers will bear the brunt of new federal regulations, which is why Members representing diverse constituents voted for my bill." H.R. 1737 passed the House by a vote of 332-96, including 88 Democrats voting in favor.