Pub. 3 Issue 1

14 www.glancda.org Five financial services organizations sign letter to the CFPB urging an adjustment in its auto financing enforcement policy in light of a new study that casts substantial doubt on the government’s analysis. WASHINGTON (Feb. 18, 2015) – The National Automobile Dealers Association (NADA), the American International Automobile Dealers Association (AIADA), and the National Association of Minority Automobile Dealers (NAMAD) today applauded the efforts of five financial services orga- nizations to fix the serious f laws in the Consumer Financial Protection Bureau’s approach to regulating auto financing. The groups, which include the American Bankers Associa- tion, American Financial Services Association, Consumer Bankers Association, Financial Services Roundtable and U.S. Chamber of Commerce, today sent a letter to CFPB Director Richard Cordray urging the Bureau to change its enforcement policy on dealer-assisted financing, in light of findings in a peer-review study that showed there is significant bias in the Bureau’s analysis. “Discrimination in the market simply cannot be tolerated,” said NADA President Peter Welch. “However, in light of the rigorous peer-review that has cast significant doubt on the CFPB’s findings, the Bureau should change course – or at least hit the pause button – and address these new concerns. We applaud the courage of these organizations for speaking up.” In 2013, the CFPB issued guidance urging lenders to change the way they compensate dealers for arranging financing for their customers because of a risk of disparate impact in the loans issued. However, an in-depth study by Charles River Associates demonstrates that the analysis the CFPB uses in enforcing its guidance is substantially f lawed and that, as a result, the Bureau’s findings are erroneous and overstated – Auto Dealer Associations Back Call for the CFPB to Correct Bias Found in Auto Lending Enforcement