Contributing Author: Karen Klees, Certified Consumer Credit Compliance Professional, EFG Companies
The auto industry won a small victory over the Consumer Financial Protection Bureau (CFPB) in November when the House passed the Reforming CFPB Indirect Auto Financing Guidance Act. In its current form, this piece of legislation directs the CFPB to amend how it issues guidance to indirect auto lenders by:
- Providing a public notice and comment period before issuing the guidance in final form;
- Making publicly available all information relied on by the CFPB, while also redacting any information exempt from disclosure under the Freedom of Information Act;
- Consulting with the Board of Governors of the Federal Reserve System, the Federal Trade Commission, and the Department of Justice; and,
- Studying the costs and impacts of the guidance to consumers, as well as women-owned and minority-owned small businesses.