Support Letter for H.R. 1737, “Reforming CFPB Indirect Auto Financing Guidance Act”

By SBE Council at 17 November, 2015, 6:29 pm

UPDATE: On November 18, the U.S. House passed H.R. 1737 by a vote of 332-96.

To All Members of the U.S. House of Representatives:

The Small Business and Entrepreneurship Council (SBE Council) strongly supports H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act.” We urge you to vote for this bipartisan legislation when it is acted upon by the full House this week.

This important piece of legislation rescinds the problematic guidance issued by the Consumer Financial Protection Bureau (CFPB) on indirect auto financing. The guidance is based on assumptions and analysis the CFPB has not made public. In the end, CFPB’s action would prevent consumers from negotiating and selecting a financing method that makes the most sense for them. This guidance would also raise costs. Small firms and self-employed individuals who purchase vehicles to conduct businesses would be impacted by this unnecessary auto-financing rule. To compete and survive, small businesses need flexibility in choosing their best financing arrangement.

H.R. 1737 requires that the CFPB be more transparent on future rules or guidance by making those proposed actions available for public review and comment. The CFPB would also be required to study the impact of its actions on consumers.

Thank you for your consideration, and for your support of America’s entrepreneurs and small business owners.

Sincerely,

Karen Kerrigan, President & CEO