Trump Signs Repeal of CFPB’s Dealer Participation GuidanceTrump Signs Repeal of CFPB’s Dealer Participation Guidance The president’s signature comes exactly five years and two months after the bureau put the auto finance industry on notice with its controversial guidance on dealer rate markups.
- May 22, 2018
- Posted by crosbyru
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WASHINGTON, D.C. — On Monday, President Donald Trump signed into law the Congress-approved resolution of disapproval of the Consumer Financial Protection Bureau’s guidance on dealer participation — ending the regulator’s attack on a key source of dealer income exactly five years and two months since the regulator issued its controversial rule.
The enactment of the Congressional Review Act (CRA) resolution not only rescinds the bureau’s fair lending guidance, it prohibits the bureau from ever reissuing a substantially similar rule unless Congress authorizes it do so by law. The president’s signature also marks the first time the CRA has been used on a rule that has been in effect for several years.
“This is a great day for consumers, as Congress and the President have helped to preserve their ability to receive auto loan discounts from local dealerships,” wrote Peter Welch, president of the National Automobile Dealers Association (NADA), in a blog posted on the association’s website. “NADA congratulates the U.S. House and Senate for their focus and perseverance on this issue, and the president for signing the new law to protect consumers.”
The signing comes about two weeks after the U.S. House approved the resolution by a 234-175 vote and more than a month after the U.S. Senate approved its version of the resolution. Its enactment also comes more than five months after the Government Accountability Office (GAO) said Congress has the power under the CRA to repeal the bureau’s dealer participation guidance.