House Votes to Rescind CFPB Vehicle Lending Guidance

May 14, 2018 | Member News

The U.S. House of Representatives has passed joint resolution, S.J.Res. 57, to rescind the Consumer Financial Protection Bureau’s (CFPB) flawed vehicle finance guidance. The resolution is supported by RVDA, NADA, and other industry allies. 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. This flawed guidance should be disapproved. 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.

Rejecting the CFPB guidance is necessary because:
Courtesy of RVDA

  • 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.

Courtesy of RVDA