WASHINGTON, D.C. --- Congressman Frank Guinta (NH-1) spoke to New Hampshire auto dealers today about their frustrations with Consumer Financial Protection Bureau (CFPB) rate-setting policies, preventing dealers from lending to worthy borrowers at a discount. The Congressman’s CFPB Indirect Auto Financing Guidance Act, H.R. 1737, would increase transparency and accountability at “an out-of-control federal agency,” he said.
“The CFPB is running roughshod over the regulatory process Congress requires for all other government agencies. Although to be fair, the Administration has concocted this one to avoid responsibility to the public or its representatives,” said Rep. Guinta, a Financial Services Committee member. “My bill would rein in overzealous bureaucrats, who in an effort to police car purchases, are costing Granite Staters good deals.”
Auto dealers have been able to offer those with better credit more competitive rates. “So much for low or no interest rates for qualified borrowers,” said Manchester’s former two-term mayor. “To cope with CFPB harassment, dealers are offering high flat rates to everyone, no matter their credit scores. Or they’re dropping out of the car loan business altogether, ” he added.
His bipartisan Indirect Auto Financing Guidance Act would require the CFPB to rescind current lending guidelines and conduct a thorough economic review, before issuing further guidance, allowing for greater public comment. “The CFPB has blatantly denied due process, excluding auto-dealers and customers from its decisions,” said the Congressman.
Peter Welch, president of the National Automobile Dealers Association, praised the legislation. “As a matter of principle, consumers have the right to negotiate, the right to seek a better deal, and the right to choose the loan that’s best for them,” he said. “When you’re paying $30,000 for a car and stretching to do it, consumers should have every possible financial advantage possible.”