On the recordNovember 18, 2015
If it ain't broke, don't fix it. Ignoring this simple wisdom, the CFPB issued a guidance bulletin, without public notice and comment, threatening to eliminate a car dealer's ability to discount interest rates for their customers. This so-called guidance was offered with no study of the impact on consumers or small businesses, and it was issued with no proof that current industry standard discount practices were harming consumers. Let me repeat. Despite the rhetoric, the guidance was issued with no evidence of any discrimination. This much is clear: the regulatory burden imposed by this guidance will be bad for car dealers because it eliminates a car dealer's ability to provide lower interest rates for their customers, and it is bad for consumers because they will inevitably pay more. H.R. 1737 is commonsense legislation that stops the CFPB's solution in search of a problem. It nullifies the CFPB's current guidance bulletin restricting discounts on auto loan interest rates, and it requires the CFPB to allow for public notice and comment before any further restrictions can be imposed. It also requires a study of the costs and impacts of interest rate deductions on consumers. It is a good bill, and I urge my colleagues to support it.
