Washington, D.C. - Today, the Senate is poised to vote on a measure offered by Senators Pat Toomey (R-Pa.) and Jerry Moran (R-Kan.) to undo an overstep by the Consumer Financial Protection Bureau (CFPB) to regulate car loans issued at auto dealerships.
Automobile dealers and leaders from across Pennsylvania strongly support Senator Toomey's legislation and have offered the following comments:
• "The franchised automotive industry strongly supports fair-lending protections and has long promoted a fair-credit compliance program based on a Department of Justice model," said Dominic Conicelli of Conicelli Autoplex in Conshohocken and the 2018 Chairman of the Pennsylvania Automotive Association. "In a lot of cases, we obtain customer's credit when they couldn't do so on their own or at a lower rate than if a customer had contacted their own local bank or credit union."
• "Dealers provide the most affordable choice and broadest availability for auto financing," said Rob Cochran, President and CEO of #1 Cochran in Pittsburgh. "Dealers often discount an interest rate to beat a competitor's rate or to meet a customer's budget needs. The CFPB's 2013 guidance pressured auto lenders to limit the dealer's ability to discount credit for their customers."
• "Flexibility to discount credit helps customers get better monthly payments and often provides them a better rate than they can get on their own," said Bob Nigra, General Manager of Scott Honda in West Chester. "It is important to keep competition in the auto loan market and make sure consumer auto loans stay affordable."
• "I support the joint resolution to disapprove the Consumer Financial Protection Bureau's 2013 indirect vehicle financing guidance," said John S. Oyler, Dealer Principal of Faulkner Nissan of Jenkintown. "As a car dealer, I strongly support fair lending laws and oppose discrimination. Favorable action on the resolution will help preserve consumer access to affordable auto credit. It also may deter future attempts by federal agencies to issue "rules" while calling them ‘guidance.'"
• "I appreciate the Senate considering this resolution which better enables dealerships to provide financing options to customers," said Matthew G. Clark, Vice President and General Manager of Humes Chrysler, Jeep, Dodge, and Ram in Waterford and President of Humes Ford of Corry. "Franchised new vehicle auto dealers provide a convenient, timely, and competitive financing option for customers. In most cases the dealership is able to achieve a lower interest rate for the customer as compared the customer contacting their own local bank or credit union. This relationship is vital to maintaining and efficient sales process and allowing customers to take possession of their vehicle the same day."
• "Every customer that enters our doors will be treated with the utmost respect and fairness, unequivocally," said Murad Elbattah, General Manager of Ken Pollock Auto Group in Pittston. "We would hope and encourage all retailers of any kind to act likewise. As a society we shouldn't have to rely on Government regulations to parent us in to making decisions that are right and just for the good of our community. We thank Senator Toomey for his leadership on this important issue."
• "The CFPB, which is totally independent and unanswerable to any elected official, has created a toxic environment in the financing of motor vehicles," said Andy Daub, Senior Partner of Brown-Daub Dealerships in Easton. "Because credit applications do not mention racial or ethnic traits, they have used vague criteria to determine whether or not an individual is among the protected class. I thank Senator Toomey for his leadership on this issue."
• "It's critical that we keep auto loans affordable for all consumers, and we are thankful that Sen. Toomey is leading Congress to push back against Washington's overreach," said John Devlin, President of the Pennsylvania Automotive Association.
• "The Association expresses strong support of S.J.Res.57, a joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to ‘Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act' that was released by the CFPB in 2013," said Reginald S. Evans, Executive Director of the MidAtlantic Regional Independent Automobile Dealers Association.
• "S.J.Res. 57 continues the bipartisan effort that began years ago to preserve the ability of local dealerships to offer discounted auto loans to their customers, and we thank Senator Toomey and Senator Moran for their leadership on this issue," said Peter Welch, President and CEO of the National Automobile Dealers Association (NADA). "America's franchised auto dealers strongly believe that every customer deserves to be treated fairly, and that there is no room for discrimination of any kind in auto retailing -- period. This is a narrowly tailored resolution that in no way modifies or affects the enforcement of any fair credit laws or regulations. But it does take the important step of ensuring that consumer discounts in auto lending are safeguarded for every consumer."