Tenney votes to end CFPB’s efforts to regulate car loans
Congresswoman Claudia Tenney (NY-22), member of the House Financial Services Committee, announced May 8, 2018, that she voted in favor of S.J. Res.57. She said “…this resolution fixes an overstep by the Consumer Financial Protection Bureau which attempted to regulate auto-loan financing issued by auto dealerships.”
According to Tenney, in 2013, the CFPB created a guidance document, to regulate auto dealers directly by manipulating financial options for consumers through indirect leasing; “however, under the Dodd-Frank Act, the CFPB was specifically prohibited from regulating auto dealers,” she said. “To fix this end run by CFPB, S.J. Res. 57 eliminates the CFPB guidance document against auto dealer financing and provides auto dealers with the flexibility to use discretion in interest rates and compensation markups, ultimately benefiting consumers.”
“Today, Congress took decisive action to increase stability in the auto-lending marketplace by increasing flexibility for auto dealers in leasing transaction,” Tenney said. “This will result in more leasing options for consumers. More than half of new car buyers finance though a dealer when purchasing an automobile.
“The overreaching rule that was issued under the Obama Administration, was little more than a Washington power grab aimed at eliminating auto dealer flexibility to discount interest rates offered to consumers. Many auto-dealers are small business owners who care deeply about their community and consumers. For example, this rollback will enable an auto dealer to help a customer with a difficult credit history purchase a car with a reasonable interest on the loan.
“Eliminating unnecessary regulations is an important step to providing consumers, especially low-income consumers, with increased access to credit.”
Watch Rep. Tenny’s floor speech on S.J. Res. 57 here: www.c-span.org/video/?c4728511/rep-tenney-floor-discussing-auto-lending.