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Top Stories
Vote Expected This Afternoon on Campbell Amendment to Exclude Dealers from CFPA
Industries Covet CFPA Exemptions
Obama Said to Offer Banks Capital to Lend to Small Businesses
Auto Task Force Shocked by State of GM, Chrysler
Carmakers Back More Fuel Economy, But Seek Flexibility
Reminder: Red Flags Enforcement to Begin on November 1
NADA Marketplace
Experient, Inc. is NADA's Official Housing Bureau for the 2010 Convention in Orlando
New Webinar Oct. 28 to Address Dealers' Commercial Credit Issues
Top Stories
Vote Expected This Afternoon on Campbell Amendment to Exclude Dealers from CFPA

WASHINGTON – With a vote expected later today, NADA’s legislative office is strongly urging dealers to call members of the House Financial Services Committee to support the Campbell Amendment to H.R. 3126, the "Consumer Financial Protection Agency Act."

Under the Campbell Amendment, auto dealers would not be subject to regulation by the proposed Consumer Financial Protection Agency (CFPA), but would maintain the consumer protection regulations administered by the Federal Reserve and the Federal Trade Commission as well as state law.

Dealers should clarify three important points regarding the amendment:
1. The Campbell Amendment would exclude only motor vehicle dealers from CFPA regulations. GMAC (a bank), Toyota Financial and other captive finance companies are not exempt under the Campbell amendment.

2. The claim that dealers would gain regulatory advantage over community bankers is unfounded. Dealers and community bankers will still be subject to the same federal consumer protection laws. Moreover, unlike many banks, dealers will continue to be subject to the full range of state consumer protection regulations.

3. Rep. Campbell has revised his amendment, which would keep “buy here pay here” auto finance operations under the CFPA.

Click here for the list of committee members. Members of the House of Representatives can be reached through the Capitol switchboard at (202) 225-3121. Click here for additional talking points and other resources.
Source: NADA Newswire

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Industries Covet CFPA Exemptions

The National Automobile Dealers Association, with member dealers in nearly every district across the country, flexed its considerable political muscle against the CFPA having any clout over its industry. The group sent out multiple “action alerts” — the most recent Tuesday morning — to drum up calls in support of Campbell’s amendment. “The CFPA overreaches when it comes to dealer-assisted finance,” which is already regulated by the Federal Trade Commission and the Federal Reserve, said David Hyatt, the dealer group’s vice president of public affairs. “Dealer-assisted financing, car loans had absolutely nothing to do with the troubles that we’re facing. So the CFPA ought to target where the troubles really come from.”
Source: Politico

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Obama Said to Offer Banks Capital to Lend to Small Businesses

President Barack Obama is set to announce an additional round of capital injections into community banks that can make the case they’ll use the money for small business lending, according to people briefed on the matter. Obama is expected to make the announcement this afternoon at a visit to a small business in Maryland, where he will also increase the caps for loans backed by the Small Business Administration.
Source: Bloomberg

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Auto Task Force Shocked by State of GM, Chrysler

WASHINGTON -- The shockingly poor financial management of General Motors and Chrysler weakened their case for a government bailout, but officials feared letting the automakers collapse would severely harm the U.S. economy, the former head of the Obama administration's auto task force says. In a first-person account posted on Fortune's Web site Wednesday, Steven Rattner said he was alarmed by the "stunningly poor management" at the Detroit companies and said GM had "perhaps the weakest finance operation any of us had ever seen in a major company."
Source: The Associated Press

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Carmakers Back More Fuel Economy, But Seek Flexibility

DETROIT — Public hearings on new, higher federal fuel-economy standards are set to start here today, and the Alliance of Automobile Manufacturers says it will support the aggressive rule changes. But it also plans to press the Environmental Protection Agency and the National Highway Traffic Safety Administration to ensure the rules retain flexibility that lets makers be creative in reaching the goals. The new fuel-economy standards will start to phase in by 2012 and raise the required industry average, now 27.5 miles per gallon for cars, to 35.5 mpg by 2016.
Source: USA TODAY

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Reminder: Red Flags Enforcement to Begin on November 1

The FTC's "Red Flags Rule" became effective Jan. 1, 2008, and after several delays, the FTC will begin enforcing the Red Flags Rule against all entities subject to the enforcement authority of the FTC, including all auto dealers on Nov. 1, 2009. Many dealers have already implemented their Red Flags programs, but those who have not should review the NADA Guide "A Dealer Guide To The Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft." Dealers should ensure compliance no later than Nov. 1, 2009 with all aspects of the Red Flags Rule, including the drafting and implementation of a written Identity Theft Prevention Program tailored to their dealership operations. Visit the sites below for more information:

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NADA Marketplace
Experient, Inc. is NADA's Official Housing Bureau for the 2010 Convention in Orlando

NADA has made arrangements with Experient, Inc. to book hotel rooms for the upcoming NADA Convention & Expo in Orlando. NADA has NOT authorized any other organization or company to make hotel reservations for the convention. E-mails, phone calls or other communications from “Expo Marketing” or “Expo Housing” or any other third party are not being sent by NADA or on behalf of NADA. To register and reserve a hotel room for the convention, visit www.nada.org/convention.
Source: NADA Newswire

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New Webinar Oct. 28 to Address Dealers' Commercial Credit Issues

NADA will present a webinar on Wednesday, Oct. 28 from 1-3 p.m. EDT, designed to suggest possible near term-solutions to current dealership commercial credit issues. A panel of representatives from the Small Business Administration (SBA), a dealership trade association, and the commercial lending community, as well as an automotive finance consultant, will review current credit concerns and how the SBA’s dealer floorplan (DFP) loan guarantee pilot program, among other solutions, can help.

While the webinar’s emphasis will be on floorplan lending, other credit lines, including real estate loans, are expected to be discussed. Special attention will be paid to SBA’s 7(a) loan guarantee programs, including DFP loans. This webinar is offered at a special reduced rate of $125. For more information or to register for “Credit in Crisis: Dealership Commercial Credit Concerns and Possible Solutions,” visit www.nada.org/seminars or call (800) 248-6232, ext. 7222#.
Source: NADA Newswire

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Quotable
 
"The CFPA overreaches when it comes to dealer-assisted finance," which is already regulated by the Federal Trade Commission and the Federal Reserve. "Dealer-assisted financing, car loans had absolutely nothing to do with the troubles that we’re facing. So the CFPA ought to target where the troubles really come from."

   
-- David Hyatt, NADA vice president of public affairs, Politico, Oct. 21
Video Highlights
 

Crisis Timeline: NADA in High Gear (NADA-TV)


Media Coverage: The Tragedy of Dealer Closings (NADA-TV)



NADA's New Buy Now Campaign


 Senate Testimony on Floorplan Loans (NADA-TV) 
 NADA Tackles Industry Crisis (NADA-TV) 
NADA on the Front Lines  (NADA-TV)

Click here for more video reports.
2010 Convention
 
 

Did you know?

Orlando is rated No. 2 out of the top 200 event destinations, attracting more than 4 million attendees for conventions and meetings each year. So why not plan a family vacation before or after the NADA convention? Convention delegates can purchase discounted tickets to nearly 100 attractions, such as SeaWorld, Universal Orlando, Walt Disney World, Kennedy Space Center and more. Click here for details.

Be in the know
at the NADA convention Feb. 13-15.

 
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