The U.S. House of Representatives Tuesday (May 8) passed joint resolution S.J.Res. 57 to rescind the Consumer Financial Protection Bureau’s (CFPB) vehicle finance guidance.
An update from the Recreation Vehicle Dealers Association (RVDA) reported that the resolution is supported by RVDA, the National Automobile Dealers Association (NADA) and other industry allies.
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.
According to the RVDA update, rejection the CFPB guidance 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.