AFSA Supports Initiative to Rescind CFPB Guidance on Auto Financing

The American Financial Services Association (AFSA) is joining with the National Automobile Dealers Association (NADA) and other sister trade associations in supporting S.J. Resolution 57 to disapprove the Consumer Financial Protection Bureau’s (CFPB) 2013 auto finance guidance. 

On March 22, Sen. Jerry Moran (R-Kan.) introduced S.J. Res. 57. This legislation has been co-sponsored by 20 Senators. Earlier this week, Rep. Lee Zeldin (R-NY) introduced H.J Resolution 132, the House companion to S.J. Res. 57. These two pieces of legislation are unique Congressional Review Act (CRA) resolutions. As such, these resolutions need only a simple majority to pass and cannot be filibustered in the Senate.

The CFPB auto lending policy, issued through guidance, directed fundamental market changes without a transparent rulemaking process to assess the impact on consumers. This guidance was issued without any public comment, consultation with CFPB’s sister agencies, or transparency.

AFSA supports Sen. Moran and Rep. Zeldin for taking the lead on this initiative. A vote in Congress is possible later this month..