All auto loans and lending sources will see additional oversight

WASHINGTON--(BUSINESS WIRE)-- With President Obama’s signature, the most significant overhaul of the nation’s financial system is now law and with it, consumers will still be able to find competitive financing options at auto dealerships.

Ed Tonkin, chairman of the National Automobile Dealers Association (NADA), praised the efforts of lawmakers who fought to preserve the existing regulatory structure for dealer-assisted financing, which protects consumers and ensures affordable auto credit.

Tonkin also cautioned that any regulatory overreach could hurt the very people it is looking to protect by disrupting the extremely competitive auto finance marketplace.

Tonkin released the following statement:

“Car buyers will ultimately benefit from the new law because it preserves dealer-assisted financing as a convenient and affordable option for consumers. The Brownback-Campbell auto dealer language received strong bipartisan support because Congress clearly understood that placing burdensome and unnecessary rules on small business dealers who merely arrange loans would make it harder and more expensive for car buyers to access auto credit.

“The new law balances strong consumer protections and affordable access to auto credit. The Federal Trade Commission, the Federal Reserve and 50 state consumer protection agencies will continue to oversee dealership’s finance operations. The new law maintains existing consumer protection laws, while permitting millions of American families to continue to have multiple financing options to purchase a vehicle.

“The newly-created Bureau of Consumer Financial Protection will have direct federal oversight over all auto loans and those that underwrite, fund or service auto loans, such as banks, credit unions, finance companies and ‘buy here-pay here’ operations at dealerships. As the new law is fully implemented, we urge regulators to closely examine how new rules will impact a family’s ability to finance a vehicle.”

About NADA: The National Automobile Dealers Association, founded in 1917, represents nearly 17,000 new-car and -truck dealers with about 37,500 franchises, both domestic and international. For more information, visit www.NADA.org and www.NADAFrontPage.com.

CONTACT:

NADA Legislative Affairs
Bailey Wood, 202-547-5500
202-557-1674 (mobile)
bwood@nada.org
or
NADA Public Affairs
Charles Cyrill, 703-821-7121
216-870-8837 (mobile)
ccyrill@nada.org

KEYWORDS:   United States  North America  District of Columbia

INDUSTRY KEYWORDS:   Public Policy/Government  Public Policy  White House/Federal Government  Automotive  Aftermarket  Professional Services  Finance  General Automotive

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