Cramer: President Signs Congressional Review Act Disapproving CFPB's Indirect Auto Financing Guidance into Law

Statement

Congressman Kevin Cramer commended President Trump for signing a bipartisan Congressional Review Act (CRA) today reversing the Consumer Financial Protection Bureau's (CFPB) rule on indirect auto lending and compliance with the Equal Credit Opportunity Act.

Earlier this month, the House of Representatives passed the legislation with Cramer's support. Since hearing from North Dakota auto dealers and lenders, Cramer supported the reversal of this regulation. It required financial institutions that have indirect lender relationships with auto dealers to either impose controls on dealer compensation policies or forbid dealer markup practices altogether.

"The CFPB's 2013 guidance pressured auto lenders to limit auto dealers' ability to discount credit for consumers," said Cramer. "This hasty guidance would have increased the overall cost of auto loans for consumers."

The Auto Dealers Association of North Dakota (ADAND) National Director, Dan Wilson, thanked Cramer for his vote and said, "Keeping discounts for auto loans in the showroom helps consumers get a better interest rate than they often can get on their own. This helps North Dakotans afford the car or truck they need."

Cramer added, "I applaud the President for acting quickly and signing this legislation. It helps everyday Americans and promotes enterprise."

Source