The Federal Reserve Board (FRB) announced June 20 that auto dealers are temporarily not required to comply with certain data collection requirements in the Dodd-Frank Act. Initially, Dodd-Frank amended the Equal Credit Opportunity Act (ECOA) to require creditors to collect and report information from credit applications made by women- or minority-owned businesses as well as small businesses.
The proposed rule falls under the ECOA, also known as Regulation B, and will allow dealers to remain exempt until the final regulations are issued.
Although the Consumer Financial Protection Bureau (CFPB) will have the authority to issue rules to implement this provision of the ECOA, the FRB still maintains the authority to issue rules for certain motor vehicle dealers, the statement continued.
Creditors are not obligated to comply with the data collection requirements until the CFPB issues detailed rules to implement the law, so the FRB issued a proposed rule to clarify that its approach also applies to motor vehicle dealers that are subject to the board’s jurisdiction. Comments from the public on the proposed rule are open until July 29.