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senate Bill S. Joint Res. 57

Repealing the Consumer Financial Protection Bureau’s Car Dealer Markup Rule

Argument in favor

The CFPB went too far by pretending its guidance regulating car loans and markups was a regulation, and the rule itself undermined the ability of dealerships to negotiate loan terms. This backdoor regulation should be repealed.

OldTimer's Opinion
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04/18/2018
The practice of dealers securing a loan at 5% then telling the buyer, we got the loan for you at 10% and writing the loan to the buyer for 10% should be ended. Also the dealer asking, “how much can you afford to pay” then making a loan that is $40 or $75 cheaper fit what the customer said they could afford needs to end. These practices are at the least predatory lending practices and at the most outright theft.
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Robert 's Opinion
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04/18/2018
Do not repeal this anti discrimination regulation. Another attempt by the corrupt Trump administration to screw the public. Beware of an elitist pretending to be a populist. . Who wins from this roll back? Not the customer.
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Brandon's Opinion
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04/18/2018
More government regulation does not work. The consumer should
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Argument opposed

While the CFPB was wrong to try to pass off its guidance regulating car loans and markups at dealerships as a full-fledged regulation, the rule should take effect to prevent racial discrimination in dealer markups.

I.Got.an.Idea...'s Opinion
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04/18/2018
Another divisive, unethical, act brought to you by the great American Republicans.
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TheJacobin's Opinion
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04/18/2018
Absolutely not. Laws like this are in place to protect consumers from unethical business practices. Republicans seem determined to take more and more protections away from Americans to fill the pockets of corporations and billionaires.
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Renee's Opinion
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04/18/2018
Repealing a regulation designed to protect consumers is more evidence of the Republicans trying to make money off of the middle and lower classes. Shame on them.
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joint resolution Progress


  • EnactedMay 21st, 2018
    The President signed this bill into law
  • The house Passed May 8th, 2018
    Roll Call Vote 234 Yea / 175 Nay
  • The senate Passed April 18th, 2018
    Roll Call Vote 51 Yea / 47 Nay
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
    IntroducedMarch 22nd, 2018

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What is Senate Bill S. Joint Res. 57?

This resolution would reject a regulation finalized by the Consumer Financial Protection Bureau on December 6, 2017 targeting indirect loans offered by car dealerships. The rule was proposed in the form of a guidance by the CFPB in 2013, but in December 2017 the Government Accountability Office found that it qualified as a regulation and had to be submitted formally as a regulation, thus giving Congress the opportunity to review. The rule allowed regulators to impose controls on auto lenders related to dealer markups (ie additional interest on the car loan as compensation to the seller) to prevent discrimination in pricing for prohibited reasons, such as race.

Under the Congressional Review Act, Congress is able to overturn regulations finalized within the last 60 legislative days with simple majority votes on a joint resolution of disapproval in both chambers and the president’s signature. CRA resolutions also prevent the federal agency that created the regulation from issuing a similar rule without being directed to do so by Congress.

Impact

Car buyers; auto lenders; and the CFPB.

Cost of Senate Bill S. Joint Res. 57

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Sen. Jerry Moran (R-KS) introduced this bill to repeal the CFPB’s Obama era rule regarding car loans at auto dealerships:

“An ill-advised Obama-era auto-lending rule issued by the CFPB missed the mark on both process and substance. This resolution of disapproval provides Congress the opportunity to reverse this overreaching rule to return a sense of stability to the auto marketplace, ultimately providing a path to lower costs for all car purchasers.”

Several consumer protection, civil rights, and progressive watchdog groups released a statement opposing this bill:

“Discrimination in auto lending contributes to credit access disparities and to the racial and ethnic wealth gap. We urge you to oppose [repeal] and keep the federal government’s commitment to rooting out racial discrimination clear.”

This legislation has the support of 22 cosponsors, all of whom are Republicans.


Media:

Summary by Eric Revell

(Photo Credit: martin-dm / iStock)

Official Title

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by Bureau of Consumer Financial Protection relating to "Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act".

    The practice of dealers securing a loan at 5% then telling the buyer, we got the loan for you at 10% and writing the loan to the buyer for 10% should be ended. Also the dealer asking, “how much can you afford to pay” then making a loan that is $40 or $75 cheaper fit what the customer said they could afford needs to end. These practices are at the least predatory lending practices and at the most outright theft.
    Like (140)
    Follow
    Share
    Another divisive, unethical, act brought to you by the great American Republicans.
    Like (207)
    Follow
    Share
    Absolutely not. Laws like this are in place to protect consumers from unethical business practices. Republicans seem determined to take more and more protections away from Americans to fill the pockets of corporations and billionaires.
    Like (155)
    Follow
    Share
    Repealing a regulation designed to protect consumers is more evidence of the Republicans trying to make money off of the middle and lower classes. Shame on them.
    Like (121)
    Follow
    Share
    Is there no end to the madness. At this rate of deregulation the little guy won’t have even a fighting chance. What will the big corporations do when they bankrupt all of us and we will no longer be able to buy their products, or stocks? They are literally biting the hand that feeds them!
    Like (60)
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    Have you bought a car recently? I am all for taking away one more tool used to screw customers.
    Like (53)
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    Do not repeal this anti discrimination regulation. Another attempt by the corrupt Trump administration to screw the public. Beware of an elitist pretending to be a populist. . Who wins from this roll back? Not the customer.
    Like (50)
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    This is primarily an anti-discrimination regulation, there is no good reason to repeal it.
    Like (42)
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    The assault on consumer protection must stop! Congress is elected to represent the people not corporations
    Like (37)
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    In the last couple of years, with some exceptions, Republican has become a synonym for racist. Racism is built into almost every system in our country from redlining neighborhoods to overcharging People of Color for cars, excessive fines for driving while Black (or Brown). They need every possible protection. No please.
    Like (32)
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    There’s a reason the term “used car salesman” is understood to be a pejorative. Keep the regulation. Protect consumers, especially minorities, who continue to be vulnerable to predatory business practices.
    Like (30)
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    This is primarily an anti-discrimination regulation, there is no good reason to repeal it.
    Like (23)
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    Anything that provides equity for all consumers should stay. Pun intended.
    Like (21)
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    More government regulation does not work. The consumer should
    Like (18)
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    The next financial meltdown starts here
    Like (17)
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    The CFPB is under assault—this repeal will weaken the average consumers ability to contain the costs of something necessary for daily living. The interest uptick for instance, has from my view a highly subjective use for which people of color and other citizens that struggle to be treated equally in other aspects of life, will bear the brunt. This further exacerbates the negative credit cycle that many people are caught in.
    Like (17)
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    Another attempt to screw the poor and give to the rich
    Like (14)
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    To all my representatives vote no. This is a good regulation and helps everyone. It’s difficult to fathom why a congress and an Administration claiming to be for Americans would attempt to strike down such appropriate and protective regulations. Nevertheless, sadly it’s clearly a GOP and Administration pattern and practice. I will remember in November.
    Like (13)
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    Why is this administration hell bent on "rolling back" regulations that protect the consumer- they'd rather protect big business.
    Like (13)
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    Here we go again. The corporate whores are bending over once more, but it’s their constituents who are going to get screwed.
    Like (13)
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