Auto dealer regulation - An inability 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 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 that they might have achieved an acceptable bipartisan compromise – until now. It was reported by Automotive News that an additional provision was surreptitiously inserted to the bill that would have actually expanded the CFPA’s oversight over car dealers.

{|Source for this article: 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) – which is the auto dealer lobby – 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 vocal in his opposition to Senate changes that went against what had been perceived to be “sensible bipartisan compromise.” No matter what, compromise would go against President Obama’s direct request that no special conditions be generated 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 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,” according to 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.”

Unfair and deceptive practices

Ridding the industry of unfair practices is the essence of the Dodd bill, which NADA finds entirely 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. Today a vote for either House or Senate approach occurs. By early next week, the agreed-upon version will leave committee and go to the House and Senate for final approval. The last step will be to get the president's signature. What will the future hold for America’s auto dealers?

Sources

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