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House Votes To Nullify CFPB Auto Finance Guidance

Jul 21, 2016

The House of Representatives recently passed an amendment that would prevent the Consumer Financial Protection Bureau (CFPB) from spending any funds to enforce the Bureau’s flawed 2013 auto finance guidance. The amendment, which passed by a vote of 260-162, was added to the fiscal year 2017 Financial Services appropriations bill (H.R. 5485).

Congress uses its “power of the purse” to change policy through spending “riders” that specifically limit the use of appropriated funds. The broader provisions of H.R. 5485 would bring the CFPB under the annual appropriations process.

Last November, the House passed H.R. 1737, a bill that would nullify the CFPB’s 2013 auto finance guidance and establish a transparent process with public participation to determine future auto finance guidance. That legislation passed by a bipartisan vote of 332-96. This legislation was in response to the CFPB’s initial issuance of the 2013 guidance without any public comment or transparency. The Bureau has also admitted that it did not study the impact of its proposed guidance on consumers.

The Senate has yet to post its companion bill (S2663) for a vote. Dealers are encouraged to contact their Senators and urge them to support the legislation when it is posted for a vote.