NADA (the National Automobile Dealers Association) is a mighty force politically, and it most recently had the chance to fight for an auto dealer exemption from CFBA (Consumer Financial Protection Bureau) oversight. Bailey Woods, spokesman for NADA, told Automotive News that Congress is headed within the right direction if their aim is to conserve dealers administrative headaches and save consumers money. Early returns seem to indicate that auto dealers should be dancing within the aisles of Congress.
Auto dealer exemption: So long, CFPB
The Congressional committee’s decision on the auto dealer exemption puts car loans in a different sphere than credit cards, mortgages and other varieties of consumer credit. Dealer-financed auto loans for people with bad credit will even continue without interruption, but the CFPB will exert their influence on the financial institutions that fund car dealer finance corps. The FTC will continue to have jurisdiction over auto dealers, but their governance has proven ineffective in the estimation of some members of Congress (legislative action can take eight years). This is due to additional reviews the FTC must perform that are not required of federal agencies.
Barney Frank: Grumpy over the vote
Barney Frank and other House Democrats wanted auto dealers to be put on a leash, as did President Obama, the Pentagon, military families, consumer rights and civil rights grounds, indicates Automotive News. The efforts of NADA on the lobbying front changed the game, particularly when one considers where the finance bill began . When the larger goal fell out of reach, Frank and crew did obtain the concession that the FTC would be allowed a shorter turnaround time in their investigation efforts. This nevertheless will not protect consumers from some of the practices of dealer finance that some call shady. Auto dealers, on the other hand, call it making a living.
Citations:
http://www.autonews.com/apps/pbcs.dll/article?AID=/20100625/RETAIL07/100629912/1128
