Pentagon, Lender Associations Oppose Brownback Amendment
Despite the Pentagon's and two lender associations’ opposition to the Brownback amendment, the National Automobile Dealers Association continued its campaign to build support for the amendment that would exempt dealers from the authority of the financial reform bill, S. 3217.
Despite the Pentagon's and two lender associations’ opposition to the Brownback amendment, the National Automobile Dealers Association continued its campaign to build support for the amendment that would exempt dealers from the authority of the financial reform bill, S. 3217.
The bill, championed by Sen. Christopher Dodd (D-Conn.), would create the Bureau of Consumer Financial Protection, which would have oversight over most financial products, including dealer-assisted financing. The Senate is expected to finish drafting the bill by Thursday night.
Sen. Sam Brownback (R-Kan.), author of the amendment, sent a letter Friday to Under Secretary of Defense Clifford Stanley asking him to clarify the Defense Department's objection to the Brownback amendment, according to the Dow Jones Newswires. Brownback specifically asked Stanley to provide additional information and explanation backing up statements Stanley made in a February letter supporting the inclusion of auto dealers in the new consumer protection bureau.
The letter also appears largely aimed at addressing the argument made by the White House and other advocates that predatory auto financing is a serious problem for the military.
The NADA said the Independent Community Bankers Association and the Credit Union National Association’s opposition to the amendment is an attempt to reduce competition from dealers.
“Local banks and credit unions are simply trying to cut out their competition so they can corner the market on auto loans,” says David Regan, the NADA’s vice president of legislative affairs. “Dealer-assisted financing is pro-consumer and pro-competition. Auto dealers can meet or beat the rates offered by banks and credit unions every day because dealer-assisted financing requires lenders to compete for a consumer’s business."
More Auto Finance

Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →