The Consumer Financial Protection Bureau (CFPB) ought to issue clear rules for auto lending using a formal rulemaking process, rather than issuing general guidance or orders aimed at individual companies, which lenders must try to interpret and apply to themselves.
According to Automotive News, that was the message from a couple of industry speakers Wednesday (March 19) at a conference in Washington, D.C., hosted by the U.S. Chamber of Commerce — a persistent critic of the CFPB.
“It’s almost like the cop standing by the side of the road, pulling people over for speeding,” said Andy Koblenz, general counsel for the National Automobile Dealers Association (NADA), during a panel discussion.
“Someone says, ‘OK, I want to comply. What’s the speed limit?’ And they say, ‘I’m not going to tell you. After the fact, I’ll look back and I’ll tell you whether you were speeding.’ That’s not fair, and it’s ultimately going to drive credit out of the market.”
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