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Senate Repeals CFPB’s Vehicle Finance Guidance


The U.S. Senate has voted to pass a resolution that preserves the ability of dealers to discount vehicle loans for their customers. This legislation rejects 2013 Consumer Financial Protection Bureau (CFPB) “guidance” that pressures indirect vehicle lenders to make unnecessary changes in the way dealers arrange financing, the RV Dealers Association reported recently.

The resolution is supported by RVDA, NADA, and other industry groups. The vote in the Senate on April 18 was 50-47. The Congressional Review Act resolution passed with the support of Senate Republicans and a lone Democrat, Sen. Joe Manchin of West Virginia.

In 2013, despite Congress exempting RV dealers and most auto dealers from the CFPB’s jurisdiction under the Dodd-Frank Act, the CFPB issued “guidance” that threatened to take away a consumer’s ability to receive discounted loans, according to RVDA. The association also pointed out that access to affordable credit is essential to consumers, and the ability of a dealer to discount credit is often necessary to meet RV buyers’ needs.

The RVDA feels the CFPB guidance repeal was necessary because:

  • The CFPB guidance was issued without any prior notice, opportunity for public comment, or consultation with the federal agencies Congress authorized to regulate dealers.
  • The vehicle finance industry strongly supports fair-lending protections and has promoted a fair-credit compliance program based on a DOJ model that effectively manages fair-credit risk while preserving discounts on credit for consumers. S.J. Res. 57 would not affect fair lending statutes or implementing regulations.
  • Preserving discounts for consumers keeps RV and auto loans accessible and affordable. The CFPB admits it never analyzed the impact of its guidance on consumers. Subsequent analysis revealed that the guidance would increase vehicle financing costs.

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