Faso Supports Local Small Businesses, Regulatory Relief
Washington D.C. – Congressman John Faso (R-Kinderhook) today voted in favor of legislation to help ensure that consumers have access to affordable credit to purchase automobiles. The reversal of a CFPB-issued guidance will maintain auto dealers’ ability to discount credit, which is necessary for giving dealers the flexibility to meet consumers’ needs and to run a thriving business.
Today’s use of the Congressional Review Act reverses a unilateral regulatory action taken by the CFPB that attempted to rewrite the law without Congressional approval and was based on flawed methodology and incomplete data. The CFPB’s action to regulate indirect auto lending by claiming non-compliance of the Equal Credit Opportunity Act was negatively impacting the auto finance market for consumers and did nothing to protect individuals from racial discrimination.
“We will never allow or accept racial discrimination in the auto finance marketplace. Furthermore, we must ensure that all auto consumers have reasonable access to affordable credit. This unilateral and heavy-handed regulatory action hurts small auto dealers in Upstate New York and consumer options for the individuals and families looking for a new car to commute or take their children to school,” said Faso. “Instead of going to Congress with dependable statistics and a proper study of the guidance’s effect on consumers, the CFPB simply circumvented its authority and issued this misguided action.”
