Auto dealer regulation - An inability 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 the newly formed Consumer Financial Protection Agency (CFPA) would hamper auto dealers’ ability to recover 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 they’d achieved a bipartisan compromise – until now. According to Automotive News, an additional provision was surreptitiously inserted into the bill that would have actually expanded the CFPA’s oversight over car dealers.

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

NADA seems to be lobbying hard for auto dealer regulation

The National Automobile Dealers Association (NADA) 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 extremely vocal in his opposition to Senate changes that went against what had been perceived to be “sensible bipartisan compromise.” Whatever happens, compromise would go against President Obama’s request made that no unique 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 will 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 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 find) an affordable way to finance a car.”

Barring unfair and deceptive practices

Ridding the industry of deceptive practices is the essence of the Dodd bill, which NADA finds completely 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 could be to get the president’s signature. What will the future hold for America’s auto dealers?

Read a lot more on this topic here

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