MEMBERS PRAISE BILL TO REIN IN FEDERAL INTERFERENCE IN CUSTOMER SERVICE
WASHINGTON, D.C. -- Nationwide auto dealers gathered in the capital today to learn more about keynote speaker Rep. Frank Guinta’s solutions to their concerns about growing federal control of their industry, namely their ability to offer competitive financing rates to credit-worthy car buyers.
“Customers expect dealers to forge relationships and offer good terms to attract their business,” Rep. Guinta, a member of the House Financial Services Committee, told more than 500 members of the National Auto Dealers Association (NADA). “But the CFPB thinks it knows better than professionals and the consumers it says it represents. It’s wedging its way into a complex transaction, raising rates and dampening sales in the name of fairness.”
Rep. Guinta addresses National Auto Dealers Association in D.C.
Rep. Guinta (NH01) explained that the agency, which receives funds directly from the Federal Reserve -- rather than through normal Congressional appropriations -- is ignoring the law that created it and standard regulatory procedure incorporating public input into new rules. 2010’s Dodd-Frank Wall Street Reform and Consumer Protection Act guaranteed auto dealers would have flexibility offering financing terms.
Auto dealers say that the CFPB also ignored their economic warnings about its drive to regulate indirect lending, a secondary loan market that allows them to offer low or no fees to responsible borrowers. Rep. Guinta’s bipartisan CFPB Indirect Auto Financing Guidance Act ( H.R. 1737) would force the CFBP to retract its rules and “go back to the drawing board.”
Peter Welch, NADA’s president, thanked Rep. Guinta for his help. “The Congressman has been instrumental in bringing bipartisan support to an issue impacting millions of Americans. They have a right to discounted auto-financing, which Congress should protect. Requiring the CFPB to re-consider its harmful guidance is extremely important. Mr. Guinta deserves a lot of credit for his leadership on this issue.” He thanked Democratic Rep. Ed Perlmutter (CO07), as well, original co-sponsor of H.R. 1737 with Rep. Guinta.