Zachary U
Hello and welcome to my page. My name is Zachary and I am a medium-skilled writer. I enjoy writing on a diverse range of topics, from headline news to personal financial development. I especially love learning new things about different cultural backgrounds and interesting varieties of life, like strange animal species and also the functionality of the human body. All in all, I'm an all-over-type of writer. Basically, the reason why I love writing so much is because it opens doors to learning.
House Dems seek auto dealer exemption from financial reform
- By Zachary U
- Published 2 July 2010
The Hill blog reports that 62 House Democrats are urging lawmakers to pursue an auto dealer exemption in light of upcoming financial reforms being considered by the Consumer Financial Protection Agency (CFPA). The movement, which was actually organized by New York Reps. Bill Owens and Mike McMahon, goes against the wishes of the White House, Defense Department and Treasury Department. It would shield auto finance companies from CFPA oversight and allow auto dealers to maintain the freedom to set lending rates and continue to utilize industry-standard lending practices. Auto dealers will only be able to continue offering dealer-assisted financing if the really bright red tape is kept to a minimum, argue pro-auto industry groups.
Source for this article: House Dems seek auto dealer exemption from financial reform by Car Deal Expert
Is it about helping customers – auto dealer exemption?
As reported by BNet.com, the proposed auto dealer exemption from CFPA financial reform may save dealers money and allow them to pass the savings on to consumers in the form of lower auto finance rates, but the potential dark side cannot be ignored. The auto finance industry is a big business. Ample evidence suggests that potential gains from the subprime market have gotten a lot of auto dealers into lower their auto loans underwriting standards. Their fee structures have also drawn the attention of the Better Business Bureau on numerous occasions, says the National Consumer Law Center.
Giving auto dealers an unfair advantage over other lenders
An auto dealer exemption would give dealerships an unfair advantage over all banks, credit unions and other auto loans outlets, says BNet. As the CFPA would have the power to set rates for everyone outside of dealer-assisted finance circles if the exemption passed into law, all car dealers could exploit this for their own gain. Customers wouldn’t get the best deal from finance groups. If a dealership wanted to close in this difficult economy, they would also be able to violate agreement terms more easily without CFPA supervision. An example would be failing to pay off existing loans on a trade-in. Consumers deserve better protection than that, argues BNet; the FTC and government agencies that are already in place have proved to be insufficient in their efforts to stand up for Joe Car Buyer.
Consumers are largely uninformed about dominant dealer assisted financing
The key to getting the best deal on auto loans is knowing that better options exist. The non-partisan Cambridge Winter Center for Financial Institutions Policy recognizes that "auto dealers actively market and price borrowers' loans," which is why so many consumers buy into their product. A level playing field would make it easier for consumers to find the auto loans that are right for them, without worry of exploitation. Giving the Consumer Financial Protection Agency jurisdiction over auto finance would make that a reality.
Read more on this topic here
BNet.com
industry.bnet.com/financial-services/100010096/financial-reform-five-reasons-why-we-need-protection-from-car-dealers/
The Hill
thehill.com/blogs/on-the-money/banking-financial-institutions/103917-house-democrats-push-for-auto-dealer-exemption
President Obama's initial call for financial reform:
youtube.com/watch?v=o-D3Pfa-ViY
Source for this article: House Dems seek auto dealer exemption from financial reform by Car Deal Expert
Is it about helping customers – auto dealer exemption?
As reported by BNet.com, the proposed auto dealer exemption from CFPA financial reform may save dealers money and allow them to pass the savings on to consumers in the form of lower auto finance rates, but the potential dark side cannot be ignored. The auto finance industry is a big business. Ample evidence suggests that potential gains from the subprime market have gotten a lot of auto dealers into lower their auto loans underwriting standards. Their fee structures have also drawn the attention of the Better Business Bureau on numerous occasions, says the National Consumer Law Center.
Giving auto dealers an unfair advantage over other lenders
An auto dealer exemption would give dealerships an unfair advantage over all banks, credit unions and other auto loans outlets, says BNet. As the CFPA would have the power to set rates for everyone outside of dealer-assisted finance circles if the exemption passed into law, all car dealers could exploit this for their own gain. Customers wouldn’t get the best deal from finance groups. If a dealership wanted to close in this difficult economy, they would also be able to violate agreement terms more easily without CFPA supervision. An example would be failing to pay off existing loans on a trade-in. Consumers deserve better protection than that, argues BNet; the FTC and government agencies that are already in place have proved to be insufficient in their efforts to stand up for Joe Car Buyer.
Consumers are largely uninformed about dominant dealer assisted financing
The key to getting the best deal on auto loans is knowing that better options exist. The non-partisan Cambridge Winter Center for Financial Institutions Policy recognizes that "auto dealers actively market and price borrowers' loans," which is why so many consumers buy into their product. A level playing field would make it easier for consumers to find the auto loans that are right for them, without worry of exploitation. Giving the Consumer Financial Protection Agency jurisdiction over auto finance would make that a reality.
Read more on this topic here
BNet.com
industry.bnet.com/financial-services/100010096/financial-reform-five-reasons-why-we-need-protection-from-car-dealers/
The Hill
thehill.com/blogs/on-the-money/banking-financial-institutions/103917-house-democrats-push-for-auto-dealer-exemption
President Obama's initial call for financial reform:
youtube.com/watch?v=o-D3Pfa-ViY
