Auto dealer regulation - A failure to compromise

Auto dealer regulation is on the minds of House Democrats of late, or a lot more specifically a lack thereof. Their belief is that the newly formed Consumer Financial Protection Agency (CFPA) would hamper auto dealers’ ability to recover by limiting their ability to continue offering dealer-assisted financing. Led by New York Reps. Bill Owens and Mike McMahon, the Democrats thought that they might have achieved an acceptable bipartisan compromise – until now. Automotive News reports that an additional provision was surreptitiously inserted to the bill that would have really expanded the CFPA’s oversight over car dealers.

{|Article Resource: Auto dealer regulation – A failure to compromise by Car Deal Expert

For auto dealer regulation, NADA is lobbying hard

The National Automobile Dealers Association (NADA) is flexing its considerable lobbying muscles to bring lawmakers in line with the more permissive House version of the auto dealer regulation bill. Kansas Republican Sen. Sam Brownback was very vocal in his opposition to Senate changes that went against what had been perceived to be “sensible bipartisan compromise.” Whichever ends up happening, compromise would go against President Obama’s direct request that no special exceptions be made when it comes to the CFPA’s jurisdiction.

Christ Dodd delivers on what Obama wants

As crafted by Democratic Sen. Chris Dodd of Connecticut, the proposed auto dealer regulation would allow the CFPA to write binding rules that car dealers would have to follow regarding “credit discrimination, credit disclosure, financial privacy and credit-report accuracy,” as reported by Automotive News. NADA spokesman Bailey Woods disparaged the Senate version of the bill, claiming that it would it a lot more difficult for “millions of Americans (to discover) an affordable way to finance a vehicle.”

Practices that are unfair and deceptive

Ridding the industry of deceptive practices is the essence of the Dodd bill, which NADA finds totally untenable. Last month, Brownback’s proposal to grant dealer exemption from CFPA regulation was approved 60-30 as “a non-binding recommendation to Senate negotiators,” writes Automotive News. A vote for House or Senate will approach today. By early next week, the agreed-upon version will leave committee and go to the House and Senate for final approval. The final step will be to obtain the president’s signature. What will end up being in the future for America's auto dealers?

Works cited

Automotive News (subscription may be required)

autonews.com/apps/pbcs.dll/article?AID=/20100623/RETAIL07/100629945/1203

Sam Brownback views auto dealer regulation as anti-small business:

youtube.com/watch?v=jv8lgKa_yAA