WASHINGTON. D.C. – Today, the House Committee on Financial Services held a hearing to discuss H.R. 1737 – the Reforming CFPB Indirect Auto Financing Guidance Act – a bipartisan bill introduced with Congressman Ed Perlmutter (D-CO) to rescind flawed guidance from the Consumer Financial Protection Bureau (CFPB) which harms consumers by limiting their ability to obtain discounted auto financing.
“In 2013, the bureaucratic CFPB issued a guidance preventing families and individuals from obtaining auto financing discounts, without a public period for consumers, small businesses or stakeholders,” said Rep. Frank Guinta. “This guidance not only affects the hundreds of hard-working auto dealers in the Granite State; but, it also affects families and individuals wishing to obtain auto ownership.
This month, Alan J. from Laconia emailed my office to share his struggle to obtain auto financing in order to purchase a car after his car broke down so that he could continue his job and continue providing for his children and his sick wife. It is because of folks like Alan that we must address this widespread issue and pass H.R. 1737 to empower the people of the Granite State, and not of the federal government.”
H.R. 1737 would repeal a CFPB bulletin from 2013 that was designed to pressure lending institutions into eliminating the availability of auto financing discounts. These discounts save consumers millions of dollars every year.
“It is refreshing to see Members of Congress working in a bipartisan manner for transparency, regulatory certainty for small businesses, and low credit prices for auto consumers,” said Peter Welch, President of the National Automobile Dealers Association. “We commend Representatives Guinta and Perlmutter for their leadership on H.R. 1737 to create a transparent and open process when issuing guidance on auto financing. H.R. 1737 now has 89 bipartisan cosponsors and the backing of the auto industry, and we urge Congress to pass this pro-consumer legislation.”
Congressman Guinta introduced H.R. 1737 with Congressman Ed Perlmutter (D-CO) on April 13, 2015. The bill has 49 Republican cosponsors and 40 Democratic cosponsors.
H.R. 1737 is supported by NADA; the Alliance of Automobile Manufacturers; the American Financial Services Association; the National Independent Automobile Dealers Association; AIADA; the Recreational Vehicle Dealers Association; the Recreational Vehicles Industry Association; the National Auto Auction Association; and the Motorcycle Industry Council.
For a copy of H.R. 1737, please click here.
For a video of Congressman Guinta discussing H.R. 1737, please click here.