Pub. 3 Issue 1

15 SPRING 2015 in some cases, dramatically so. For example, Charles River, after reviewing data from more than 8 million financing transactions, concludes that the CFPB overstates one of its comparisons by 41%. And, remarkably, despite this indict- ment of its methods, the CFPB has yet to address the study or its implications on CFPB policy. In the current dealer-assisted financing model, consum- ers benefit as dealers obtain quotes from dozens of finance sources – many of which consumers would not ordinarily have access to. However, auto loan customers are not re- quired to state their race or ethnicity on loan applications. To determine this, the government uses complex statistical modeling to estimate the number of minorities in a sample. The Charles River study showed that the CFPB’s use of this modeling contains numerous flaws, thereby casting doubt on the CFPB’s larger policy. The f laws in the CFPB’s methodology have not stopped au- tomobile dealers from developing procedures to address the CFPB’s concerns about the risk of discrimination in auto financing. In 2014, NADA, AIADA, and NAMAD jointly released the NADA Fair Credit Compliance Policy & Pro- gram, which provides a dealer with an optional mechanism for ensuring that its credit pricing is established in a consis- tent manner and is based exclusively on legitimate business considerations. The program is modeled on – and fully adopts – a Department of Justice fair credit compliance program that the agency required dealers to implement in prior enforce- ment actions. For more information about the CFPB and dealer-assisted financing, visit www.nada.org/cfpb. About NADA NADA, founded in 1917, represents more than 16,200 new-car and -truck dealerships with both domestic and international franchises. For more information, visit www.nada.org. About AIADA Established in 1970, AIADA is the only association whose sole purpose is to represent America’s 10,000 international nameplate automobile franchises that sell and service the following brands: Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Maserati, Maybach, Mazda, Mercedes, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Scion, Smart, Subaru, Toyota, Volkswagen, and Volvo. These retailers have a positive economic impact both nationally and in the local communities they serve, providing more than 500,000 American jobs. Visit AIADA online at www.aiada.org. About NAMAD Since 1980, NAMAD has proudly taken a leadership role as advocates for diversity and inclusion in all aspects of the automotive industry. NAMAD collaborates with local, regional and national policymakers as well as domestic and international manufacturers to establish business protocols which are meaningful, equitable and sustainable for our nation’s minority entrepreneurs and employees currently and potentially working within the automotive industry in America. For more information, visit www. namad.org.  Focused on your • Accounting • Taxes • Audit • Review • Bookkeeping • Internal procedures • Cash flow • Consulting services Since the 1940’s we have provided a complete range of services to the owners of dealerships and other automotive related businesses. Put our experience to work for you. We’re focused on you www.LSLCPAS.com Brea, CA (714)672-0022 C E R T I F I E D P U B L I C A C C O U N T A N T S