Postings

Advertising recalled vehicles as ‘safe’ is bad business for consumers
Most recalled consumer products are illegal to sell until the product has been repaired or replaced. However, many recalled vehicles are allowed to continue operating on the road while a fix is pending. These cars and trucks may also be sold before the recalled repair has been done. We think that’s wrong and dangerous for consumers. Coalition advocates joined together in asking the Federal Trade Commission to prohibit auto dealers, including retail giant Car Max, from engaging in false advertising regarding the safety of unrepaired recalled cars.

Cars now safer to rent, thanks to mom-turned-advocate
A mother’s 11-year crusade resulted in President Barack Obama signing a bill that requires rental car companies to repair vehicles under safety recall orders before renting them to consumers. It is now illegal, under federal law, for a rental car company with a loaner or a rental car fleet of 35 vehicles or more, to rent, loan, or sell an unrepaired recalled rental or loaner car until the safety defects have been repaired.

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.

Don’t restrict the CFPB’s oversight of auto financing issues
In the latest effort to restrict the Consumer Financial Protection Bureau’s (CFPB) jurisdiction, legislators target the agency’s regulatory power over the auto financing industry. The “Reforming CFPB Indirect Auto Financing Guidance Act” (H.R. 1737) places unnecessary restrictions on the agency and is designed to hamper the agency’s attempts to bring fairness and transparency to the auto lending market.

Policy riders threaten vital public safeguards, hijack budget process
A coalition of 178 groups is urging President Barack Obama and all 535 members of Congress to oppose any federal appropriations bill that contains inappropriate and ideological policy riders. These riders would jeopardize policies that restrain Wall Street abuses; guarantee clean air, food and water; ensure safe consumer products and continued access to vital health care services; keep homes and workplaces safe; prevent consumer rip-offs; and hold big corporations accountable for wrongdoing.

Keep auto insurance affordable for everyone
The Federal Insurance Office (FIO) must establish a strong affordability standard for low- and moderate-income Americans, according to nearly 50 organizations from 23 states and DC that jointly submitted comments to FIO. The groups called on FIO to move forward with its proposal to collect data directly from insurance companies and review the cost of basic liability auto insurance for tens of millions of financially strained drivers.

Recalled vehicles should not be rented to consumers
Those who frequently drive rental cars should feel more secure behind the wheel. Senator Claire McCaskill introduced an amendment that will force rental companies to perform recalls on their vehicles before they can be driven by consumers. An earlier GOP proposal would have allowed unsafe, potentially dangerous vehicles to remain in service or sold as long as the customer was warned of the recall.

In favor of expanding the CFPB’s reach in the auto industry
In light of its recent supervision report detailing auto-lending discrimination uncovered at banks, the Consumer Financial Protection Bureau (CFPB) is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.

Does CarMax sell dangerous cars to consumers?
Consumer Action joined 10 organizations in asking the Federal Trade Commission (FTC) to investigate auto retail giant, CarMax over claims that its advertisements are deceptive because CarMax does not fix used vehicles under recall before it sells them. CarMax, the nation’s largest used-car retailer, runs ads promising that the vehicles it sells have undergone rigorous quality inspections.

Advocates ask for auto insurance affordability study
Consumer Action joined over 30 organizations from around the country in urging the U.S. Treasury Department’s Federal Insurance Office (FIO) to collect data from insurance companies in order to assess the affordability of auto insurance for low- and moderate-income Americans and those living in historically underserved communities. Advocates want to know what discounts, if any, are extended these customers and who qualifies for the programs.

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