Used Car News

Some auto finance activity has been exempted, for now, from the proposed Consumer Financial Protection Agency, but plenty of dealership activity may still fall under this jurisdiction.

An amendment by Rep. John Campbell (R.-Calif.) excluded certain finance activity from the bill offering the framework for the agency. It exempts most traditional finance, according to
Keith Whann, general counsel for the National Independent Automobile Dealers Association.
Buy-here, pay-here remains another matter. In-house finance could fall within the agency’s scope, as related finance companies might.
“I can’t answer that yet,” Whann said.
Manufacturers’ captive finance companies are covered by the proposed agency. Dealer
captives may be as well, he said.
The entire process has a long way to go. The Senate still needs to offer its own version of the legislation.
The NIADA is taking an active role in trying to shape the legislation. The association hired new lobbyists to help with this effort.
Whann said need to stay on top of this legislation.
Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers, said legislators are targeting dealer finance along with payday loans and other segments.
“We’re going to be under attack next year,” Shilson said. “They believe it’s the mortgage industry all over again."