WASHINGTON, D.C. — Tomorrow, the U.S. Senate may vote on S.J.Res. 57, a resolution that preserves the ability of dealers to discount vehicle loans for their customers. This legislation would disapprove flawed 2013 Consumer Financial Protection Bureau (CFPB) “guidance” that pressures indirect vehicle lenders to make unnecessary changes in the way dealers arrange financing. The resolution is strongly supported by RVDA, NADA, and other industry groups.
The RVDA asks that dealers urge their U.S. Senators to vote “Yes” on S.J.Res. 57 today.
In 2013, despite Congress exempting RV dealers and most auto dealers from the CFPB’s jurisdiction under the Dodd-Frank Act, the CFPB issued “guidance” that threatened to take away a consumer’s ability to receive discounted loans. This flawed guidance should be disapproved. Access to affordable credit is essential to consumers, and the ability of a dealer to discount credit is often necessary to meet RV buyers’ needs.
According to the RVDA, passage of S.J.Res. 57 is necessary because:
The CFPB guidance was issued without any prior notice, opportunity for public comment, or consultation with the federal agencies Congress authorized to regulate dealers.
The vehicle finance industry strongly supports fair-lending protections and has promoted a fair-credit compliance program based on a DOJ model that effectively manages fair-credit risk while preserving discounts on credit for consumers. S.J. Res. 57 would not affect fair lending statutes or implementing regulations.
Preserving discounts for consumers keeps RV and auto loans accessible and affordable. The CFPB admits it never analyzed the impact of its guidance on consumers. Subsequent analysis revealed that the guidance would increase vehicle financing costs.
A close vote is expected.
To find your Senators click here. Or call the U.S. Capitol Switchboard at (202) 224-3121.
For more information from RVDA on this issue click here.
SOURCE: RVDA press release