The CFPA Auto-Dealer Exemption

The CFPA/B proposal that the House conferees have presented to the conference committee for the financial reform bill includes an exemption for auto-dealers (see the bottom of p. 13).  It's frankly an exemption that is impossible to justify except as special interest pleading.  They House proposal would exempt used-car salesmen for goodness sakes!  (There's also a less troubling pawn-shop carve-out).  

Today the Federal Reserve's Consumer Advisory Council (CAC) has submitted a letter of opposition to the auto-dealer carve-out to Chairmen Frank and Dodd.  This letter is an unprecedented move for the CAC, which is a non-partisan, expert body that does not usually weigh in on legislation.  I think it shows that there is absolutely no policy justification for the auto dealer carve-out.  

Comments

[Bob]

Yes! Can we please stop pretending that consumer protections need not apply to what is frequently the second most expensive purchase (the most if you rent) that most people will make? I will never forget the Nader story where he crossed out some of the odious provisions of an auto purchase agreement and was kicked out of the dealership. Honest dealing through force of law please.