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

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 →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →