Dealers Urged to Stay Engaged on Brownback Amendment, Recruit Others
Postponed Vote Shows Positive Progress
WASHINGTON -- NADA’s Legislative Office strongly urges dealers to keep the pressure on senators as the vote originally scheduled yesterday was rescheduled for early next week.
“Even with strong White House opposition, senators still need to hear from dealers and others about the importance of dealer-assisted financing and how the Bureau of Consumer Financial Protection would threaten the convenience and competition in auto lending that currently exists today,” says David Regan, NADA vice president of legislative affairs.
Dealers are urged to use every means possible of getting the message to the Senate that the Brownback amendment is pro-consumer because it preserves the ability of car buyers to access affordable credit to purchase a vehicle that meets their daily transportation needs. Regan suggested the use of social media such as Facebook, Twitter and others to expand the number of calls and letters to Senate offices.
For the latest developments and links to valuable information on how the Brownback amendment protects dealer-assisted financing as an affordable, convenient and competitive source of credit for car buyers, follow NADA Legislative on Facebook (http://www.facebook.com/NADALegislative)
Regan also encourages dealers to ask friends, customers, contractors, suppliers, civic organizations that the dealership supports and others to also weigh in with senators via phone calls, faxes and e-mails, etc.
Senators can be contacted through the Senate switchboard at (202) 224-3121 and most can be written to via their Web site: www.Senate.gov.
When contacting senators, stress the following points:The companion House amendment passed the House Financial Services Committee on a bipartisan vote of 47-21, and was included in the House-passed Wall Street reform bill.
The Amendment Has Bipartisan Support
Senator Brownback has made changes in order for Democratic Senators to support the amendment.
The Amendment is Pro-Consumer Because It Keeps Auto Credit Affordable
- Dealer-assisted financing provides more convenience, more competition, and more choices for consumers. Because dealerships have multiple relationships with lenders (community banks, local credit unions, national banks, and captive finance companies), they are able to help find consumers the best rate.
- Consumers can always rely on their own banking relationships, but dealers can regularly meet or beat the bank or credit union rate.
The Amendment Strengthens Consumer Protections
- Under the Brownback amendment, every auto lender and auto loan would be directly regulated by the CFPB. The banks, credit unions, buy-here-pay-here dealers, and finance companies that fund auto loans would be fully regulated by the CFPB.
- Dealers are not banks. They help arrange financing and help consumers find affordable credit. This competition helps keep auto financing affordable.
- The Brownback amendment expressly protects all existing federal consumer protection statutes that govern dealer-assisted financing would still be effectively enforced by the Federal Reserve Board and the Federal Trade Commission and 50 state consumer protection agencies.
Source: NADA's Legislative Office
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