NADA Alerts Dealers: 'Auto Financing May Be at Risk'
Dealers Are Urged to Contact Their Senators in Support of the Brownback Amendment to Preserve Affordable Auto Finance Options
WASHINGTON -- The Senate is soon to consider a financial regulation bill that could subject auto dealers to a whole new set of burdensome regulations. “Adding another layer of regulation will reduce availability of credit and increase costs to consumers,” said Ed Tonkin, chairman of the National Automobile Dealers Association (NADA).
The bill would create a Bureau of Consumer Financial Protection which would have sweeping powers to control dealer-assisted financing and even commissions for auto salespeople.
"Auto dealers should be excluded from the bureau," Tonkin said. "Wall Street caused the financial meltdown, not local auto dealers on Main Street."
"We’re not seeking exemption from federal and state regulation. There are already effective federal and state laws that govern dealer-assisted financing," Tonkin added.
Sen. Sam Brownback (R-Kan.) is sponsoring an amendment which would exempt auto dealers from this new bureau. In the next couple of weeks, the full Senate is expected to consider the Brownback Amendment.
Editor’s note: NADA’s legislative office is urging dealers to contact both of their Senators to support the Brownback Auto Dealer Amendment to the Senate Financial Reform Bill, and to include the amendment in any compromise legislation. Call the Capitol switchboard at (202) 225-3121. Click the following links for a copy of the Supporting
Arguments and an Issue Brief.
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