CFPB to Issue Vehicle Finance ‘White Paper’
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray says the agency will issue a white paper this summer explaining its use of the proxy method for identifying discrimination in indirect vehicle financing.
In March 2013, the CFPB issued a bulletin to banks and finance companies that, under existing law, any dealer finance charge participation may violate the Equal Credit Opportunity Act and Regulation B. Since then, industry and lawmakers have been pressing the CFPB to explain how it determined that dealer finance charges are discriminatory.
RVDA and its industry allies are urging lawmakers to support a recently introduced bill, the Bureau Guidance Transparency Act (H.R. 4811), requiring more transparency and accountability from the CFPB. The bill would rescind last year’s auto finance guidance and force the bureau to give public notice before it issues any guidance. The CFPB would be allowed to reissue the auto finance guidance, but only with public review.
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