Commitment to Fair Lending Practices

U.S. House passes bill revoking CFPB auto lending guidance

By John Irwin | Automotive News

A bill that would limit the U.S. Consumer Financial Protection Bureau’s 2013 auto lending guidance passed the House of Representatives late Wednesday by a 332-96 vote.

H.R. 1737 — the Reforming CFPB Indirect Auto Financing Guidance Act — would revoke 2013 auto lending guidance from the CFPB. The guidance suggests lenders should either impose limits on or eliminate dealerships’ ability to adjust, on a case-by-case basis, the amount of compensation they keep for arranging a consumer auto loan, a discretionary practice that the CFPB says can lead to discriminatory loan pricing. The bureau oversees lenders but not dealers.

Source: Automotive News | Read the full article here.