H.R. 1737 Would Force CFPB To Act Transparently

We’ve brought you many stories previously about the CFPB. A new bill before congress could mean regulations on the way for this regulator.

An auto-financing bill seeking to make the CFPB more accountable will be voted on November 17 or 18. The bill, H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act,” would nullify a previous auto guidance, which was created by the CFPB without public consent. That guidance sought to combat auto loan discrimination by increasing regulation over auto lending. H.R. 1737 calls for the following:

-The CFPB provide a public notice and comment period before issuing an auto guidance in its final form

-The CFPB must: “make available to the public, including on the website of the Bureau, all studies, data, methodologies, analyses, and other information relied on by the Bureau in preparing such guidance”

-The CFPB must consult with the Department of Justice, FTC, FRS and conduct a study on the costs and impacts of an auto guidance to consumers and women-owned, minority-owned, and small businesses

The bill has support from NADA, as evidenced by the article penned by NADA president Peter K. Welch. Part of Welch’s article reads, “H.R. 1737…would ensure fair access to credit for everyone, while preserving a consumer’s ability to get discounted interest rates and competitive credit.” NADA is encouraging dealers to call their local representative to show support for the bill.

Standing in opposition to the bill is the Obama administration. As reported by Reuters, the White House out spoke out against H.R. 1737 saying, the CFPB auto guidance provides, “important guidance designed to prevent discriminatory pricing of auto loans.”

Do you support H.R. 1737, which seeks to prevent the CFPB from making sweeping decisions without public or governmental input? Finally, how closely do you follow the actions and controversy surrounding the CFPB?