Published: November 2015

Lawmakers open the door for discrimination when buying a car

Consumer Action joined consumer advocates in opposing the Reforming CFPB Indirect Auto Financing Guidance Act (H.R. 1737) which allows racially discriminatory car lending practices. If the bill passes, it could restore a system that routinely charges black and Latino borrowers hundreds of dollars more for car loans than similarly-qualified white borrowers.

H.R. 1737, the so called “Reforming CFPB Indirect Auto Financing Guidance Act.” would disturb regulatory efforts to crack down on discriminatory auto lending practices. The bill weakens the Consumer Financial Protection Bureau’s oversight of auto lending, including interest rate markups that cost consumers tens of billions of dollars and have been found to violate fair lending practices through a differential impact on minority purchasers of automobiles. Specifically, H.R. 1737 would override the Consumer Financial Protection Bureau’s (CFPB) efforts to combat auto loan discrimination and prevent the CFPB from re-issuing the rule until it produces more research on the matter.

Lead Organization

Americans for Financial Reform (AFR)

Other Organizations

Alliance for a Just Society | Alliance of Californians for Community Empowerment | Americans for Financial Reform | Coalition California Rural Legal Assistance Foundation | Center for Digital Democracy| Center for Economic Integrity – New Mexico Office Center for Economic Justice | Center for Global Policy Solutions | Center for Popular Democracy | Center for Responsible Lending | Center for Working Families | Color of Change | Communities Creating Opportunity | Consumer Action | Consumer Federation of America | Consumers for Auto Reliability and Safety | Consumers Union | Housing and Economic Rights Advocates | Keystone Progress | The Leadership Conference on Civil and Human Rights | Main Street Alliance | NAACP | Neighborhood Housing Services of Greater Cleveland New Economy Project | Public Good Law Center | Reinvestment Partners

More Information

For more information, please visit AFR's website.

Download PDF

Lawmakers open the door for discrimination when buying a car   (CoalitionLetterOppose1737.pdf)

 
 

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