FI showroom red and grey logo
MenuMENU
SearchSEARCH

Bill to Rescind CFPB Auto 'Guidance' Gains Support in Congress

More than 400 dealers traveled to the nation’s capital in support of a new bill that could nullify the CFPB’s guidance on auto lending.

by Staff
September 16, 2014
Bill to Rescind CFPB Auto 'Guidance' Gains Support in Congress

 

3 min to read



WASHINGTON, D.C. — More than 400 new-car dealers and dealer association executives from across the country traveled to the nation’s capital last week to urge lawmakers to support a new bipartisan bill that nullifies the Consumer Financial Protection Bureau’s “guidance” on auto lending.

House bill 5403, Reforming CFPB Indirect Auto Financing Guidance Act, is sponsored by Reps. Marlin Stutzman (R-Ind.) and Ed Perlmutter (D-Colo.). It already lists 50 cosponsors in the House since it was introduced on Sept. 8. The bill is a narrower version of H.R. 4811, which was reported out of the House Financial Services Committee by a bipartisan vote of 35-24 in June.

Ad Loading...

“[Dealers] are such an important part of the economy,” Rep. Stutzman told attendees at the 2014 National Automobile Dealers Association (NADA)’s Washington Conference on Sept. 10. “The CFPB is one of the most unaccountable agencies in the federal government.”

The Stutzman-Perlmutter bill requires the CFPB to provide a public comment period before reissuing any guidance on auto finance. The bill also requires transparency and accountability from the agency by making public any studies, data and analyses used to determine future auto finance guidance.

In remarks to his fellow dealers in the audience at the two-day legislative conference, Rep. Mike Kelly (R-Pa.), who played football at the University of Notre Dame, sounded every bit like a head coach talking to his team. In a passionate tone, he urged dealers to stand together, invite members of Congress to visit their dealerships and become more active in the political process by “getting good people elected.”

Kelly, a multifranchise dealer in Butler, Pa., added that there are a lot of marginal customers who benefit from dealer-assisted financing. He noted that officials from the CFPB do not understand the dealership business.

“[The Stutzman-Perlmutter bill] is incredibly important to us,” Kelly said.

Ad Loading...

In March 2013, the CFPB issued guidance regarding a dealer’s ability to discount interest rates offered to consumers to finance vehicle purchases. The CFPB claims that negotiated interest rates between dealers and their customers create a significant risk of unintentional “disparate impact” discrimination. But according to the NADA, there are a variety of legitimate business-related factors that can affect finance rates, such as beating a competing rate.

NADA Chairman Forrest McConnell highlighted the NADA’s recent legislative accomplishments and outlined the challenges ahead during the general session.

“In the past year, the NADA helped repeal outdated bills that were time-takers and money-wasters,” said McConnell, a Honda/Acura dealer in Montgomery, Ala. “We’ve led the charge against harmful tax reform proposals, including LIFO, heavy-duty truck excise taxes and broad recall legislation on rental vehicles.”

Other speakers included House Minority Whip Steny Hoyer (D-Md.); Rep. Jamie Herrera Beutler (R-Wash.); NADA President Peter Welch; Jeff Carlson, chairman of the NADA’s Dealers Election Action Committee and a Ford and Subaru dealer in Glenwood Springs, Colo.; and political analyst Charlie Cook.

More F&I

Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
SponsoredSeptember 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&ISeptember 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
2026 StoneEagle summary
F&Iby Hannah MitchellAugust 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
Ad Loading...
man with white hair and glasses delivering a speech standing next to a podium
F&Iby Lauren LawrenceAugust 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&Iby Justin B. GasmanAugust 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Ad Loading...
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →