President Trump Signs Bill to Rescind CFPB Vehicle Lending Guidance
President Donald Trump has signed joint resolution, S.J.Res. 57, rescinding the Consumer Financial Protection Bureau’s (CFPB) flawed vehicle finance guidance. The legislation was supported by RVDA, NADA, RVIA, 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 vehicle loans.
Earlier this month, the House voted 234-175 to approve the measure, with 11 Democrats joining the GOP. supporters. CFPB acting Director Mick Mulvaney said in a statement, “I am heartened that the people, through their elected representatives, have corrected this instance of Bureau overreach.”
While the CFPB has authority over vehicle lenders, the 2010 Dodd-Frank Act specifically excluded RV and other vehicle dealers from the bureau’s jurisdiction. RVDA and its allies consistently questioned the methodology used to allege discrimination in lending, which was the rationale for the “guidance.” The CFPB used consumers last names and addresses to make educated guesses about their protected status. “They made it up,” said House Financial Services Committee Chairman Jeb Hensarling (R-TX), as quoted in the Wall Street Journal. “They had no data. And so, they made it up.”
Rejecting the CFPB guidance was necessary because:
Phil Ingrassia, CAE
Courtesy of RVDA
A park model RV (also known as a recreational park trailer) is a trailer-type RV that is designed to provide temporary accommodation for recreation, camping or seasonal use. PMRVs are built on a single chassis, mounted on wheels and have a gross trailer area not exceeding 400 square feet in the set -up mode. PMRVs are most often used in recreational vehicle campgrounds. They may be owned by the campground and rented to guests, or they may be brought in and used exclusively by their owners on a site rented or leased from the campground. They can also be placed by their owners on private property. These RVs are used for recreational purposes only. They are not meant to be permanently affixed to the property, they do not improve property values in any way, and they are neither designed nor intended by their manufacturers to be used as permanent residences. Models range from $20,000 – $80,000.