According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.”
Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a flat-fee system would provide more transparency and prove beneficial to consumers over the current discretionary interest rate system, which the agency claims can be used to discriminate against certain groups of customers.
McConnell returned fire, proclaiming the CFPB’s reasoning as “flawed,” and that dealers are against discrimination:
Dealers have to discount those rates to be competitive. The current system saves customers money. Period.
At stake are 87.4 million outstanding loans worth over $900 billion as of Q1 2014, 90 percent of which originate from 38 auto finance companies that would fall under the proposed CFPB regulations.
The post NADA, CFPB Fight For Future Of Automotive Financing appeared first on The Truth About Cars.
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