Auto dealer regulation is a failure to compromise

Auto dealer regulation has been on the minds of House Democrats most recently, 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 recuperate during these trying financial times 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. As outlined by Automotive News, an additional provision was surreptitiously inserted into 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

NADA is lobbying hard for auto dealer regulation

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

Christ Dodd delivers on what Obama wants

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

Barring unfair and deceptive practices

Ridding the industry of unfounded and deceitful practices is the heart and soul 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 either the House or Senate approach occurs today. By early next week, the agreed-upon version will leave committee and then will go to the House and Senate for final approval. The last step can be to get the president's signature. What is going to be 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