The U.S. House of Representatives approved a measure that would recall a lending guidance issued by the Consumer Financial Protection Bureau and add transparency to the government group.
Congress approved the measure, titled “Reforming CFPB Indirect Auto Financing Guidance Act”, with 244 Republicans and 88 Democrats supporting; 96 Democrats opposed the measure.
“We applaud Congressional action to bring some accountability when it comes to the regulation of dealer-assisted financing,” RVDA President Phil Ingrassia said in a news release. “The market as it exists today provides consumers with many competitive financing options for RVs and other vehicles.”
The reform measure now moves to the Senate.
The resolution aims to recall a CFPB guidance from 2013 that opposed dealers’ indirect lending practices.
The RV industry is exempt from CFPB oversight under the Dodd-Frank Act legislation that created the Bureau in 2010, but many in the industry, including the RV Dealers Association, believe that CFPB oversight could affect the price of consumer loans by pressuring banks to stop rewarding dealers for indirect loans.
The RVDA, along with auto dealer and other industry associations, have urged reform of the CFPB, pushing for transparency in how the Bureau determines guidance and what information it uses to find unfair lenders.
The resolution would require the CFPB to obtain public feedback on future guidances, “make publicly available all information relied on by the CFPB … and study the costs and impacts of the guidance to consumers and women-owned, minority-owned and small businesses,” according to the text.