Editor’s Note: The Recreation Vehicle Dealers Association (RVDA) today (April 16) issued this legislative alert to the RV industry.
The U.S. Senate is considering financial regulatory reform legislation that would create a Bureau of Consumer Financial Protection (BCFP), similar to the Consumer Financial Protection Agency (CFPA) approved by the House in 2009. This new federal agency would have sweeping powers to potentially regulate dealer-arranged financing, reduce consumer access to credit and hurt RV sales.
Some negative outcomes of the bill may include additional limitations on compensation for arranging financing, increasing the length of cancellation periods after signing finance contracts and additional limits on loan terms.
RVDA urges you and your dealership employees to contact your U.S. senators immediately, before this legislation is debated on the Senate floor. This alert includes suggested talking points and a link to contact information for your U.S. senators.
An amendment to the BCFP bill is expected to be offered by Sen. Sam Brownback, R-Kan., which would exempt automobile dealers. Sen. Brownback will offer his amendment when the financial reform bill is considered on the Senate floor sometime in the next few weeks. Sen. Brownback is open to modifying the amendment to include RV dealers in the BCFP exemption, but he needs other senators interested in supporting RV dealers to join him as co-sponsors.
Action & Talking Points
RVDA is asking dealers to immediately contact their U.S. senators by phone and/or e-mail using the suggested talking points below:
- RV dealer are not banks. The Senate should exclude RV dealers from the Bureau of Consumer Financial Protection because RV dealerships are not financial institutions. We did not cause the economic meltdown in 2008 and dealers should not be subjected to the consequences of Wall Street’s actions.
- Don’t hurt the economic recovery. The RV industry is just now starting to recover from the recession. Manufacturers and dealers are beginning to hire and re-hire displaced workers. Don’t stall the recovery by making it harder for my customers to buy an RV by limiting their financing options.
- Where’s the problem? According to FTC data from 2008, less than 1% of consumers’ complaints were motor vehicle related – and even fewer were vehicle finance related.
To contact your U.S. senator, click here.
If you have any feedback from your senator’s office, need more information or have personal contacts in your senator’s office, please contact RVDA’s director of legal and regulatory affairs at firstname.lastname@example.org.
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