Providing for Congressional Disapproval of A Rule Submitted By Bureau of Consumer Financial Protection

Floor Speech

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Mr. KUSTOFF of Tennessee. Mr. Speaker, I rise today in support of S.J. Res. 57, which will roll back a rule issued by the Bureau of Consumer Financial Protection related to indirect auto lending.

We know that in 2013 the Bureau issued guidance to financial institutions that would eliminate an auto dealer's ability to discount interest rates offered to consumers who finance vehicle purchases.

As many of us know, the CFPB has a longstanding history of imposing burdensome rules and regulations on a wide range of financial products. The CFPB has often issued rules without understanding of the full scope of the problem and without regard to the costs of compliance it imposes on an industry. This rule is no exception.

As clearly stated in section 1029 of the Dodd-Frank Act, the Bureau is explicitly prohibited from regulating auto dealers. This attempt by the Bureau to provide guidance to auto lending is a clear violation of the statute and is yet another example of how the Bureau continued to abuse its statutory power under then-Director Richard Cordray.

I am pleased to join my colleagues here today to ensure that the Bureau does not issue any substantially similar rules as it relates to indirect auto lending.

Mr. Speaker, I thank the chairman and other members of the House Financial Services Committee for bringing this important legislation to the floor. I urge my colleagues to support this important measure to help rein in the CFPB's regulatory overreach.

Ms. MAXINE WATERS of California. Mr. Speaker, I reserve the balance of my time.

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