U.S. Senate Banking Committee Republican Pat Toomey said the panel plans to repeal the Consumer Financial Protection Bureau’s (CFPB) indirect auto lending and leveraged lending rules in the coming weeks.
According to a Reuters report, the agency conceived to stamp out predatory lending must pull back from “unfair” oversight of the finance sector, Toomey added.
Drivers who use indirect auto loans are financed through a dealership. Those dealers are backed by banks.
In March 2013, the CFPB limited loan markups and compensation for dealers on auto loans – specifically on the basis of race, national origin, or credit score.
Toomey said the senate banking committee would scrap that rule.
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