On Wednesday (April 18), 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.
The Recreation Vehicle Dealers Association (RVDA) reported in a release that the 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.
RVDA is asking dealers to urge their U.S. Senators to vote “Yes” on S.J.Res. 57 today. To find your senators click here.
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. 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.
RVDA stated that 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.
Call the U.S. Capitol Switchboard at 202-224-3121. For more information from RVDA on this issue click HERE.