{"database": "press", "table": "releases", "rows": [["http://alceehastings.house.gov/news/documentsingle.aspx?DocumentID=364822", "Hastings and Posey Call for Transparency in CFPB Auto Lending Guidance", "2013-12-18", "2013", "2013-12", "Democrat", "House", "FL", "Alcee Hastings", "H000324", "alceehastings.house.gov", null, null, "legacy", "Today, Representatives Alcee L. Hastings (D-FL) and Bill Posey (R-FL), along with 14 members of the Florida Congressional delegation, sent the following letter to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray, expressing concerns regarding the agency\u2019s March 21, 2013 guidance and its potential impact on the auto dealer industry, indirect vehicle financing market, and consumers nationwide. (Please also find below and attached a copy of the letter).\r\nJoining Hastings and Posey as co-signers of the letter were: (14) Reps. Ileana Ros-Lehtinen, Corrine Brown, John L. Mica, Jeff Miller, Mario Diaz-Balart, Debbie Wasserman Schultz, Theodore E. Deutch, Richard B. Nugent, Dennis A. Ross, Frederica S. Wilson, Ron DeSantis, Lois Frankel, Joe Garcia, and Patrick E. Murphy\r\nThe National Automobile Dealers Association (NADA) supported the letter.\r\nDecember 18, 2013\r\nThe Honorable Richard Cordray  \r\nDirector  \r\nConsumer Financial Protection Bureau  \r\n1700 G Street, NW  \r\nWashington, DC 20552\r\nDear Director Cordray:\r\nAs members of the Florida Congressional delegation, we write to express our concerns regarding guidance issued by the Consumer Financial Protection Bureau (CFPB) on March 21, 2013 that could negatively impact the auto dealer industry, indirect vehicle financing market, and consumers in our state and nationwide.\u00a0 It is our understanding that the CFPB issued this guidance based on an assessment of disparate impact under the Equal Credit Opportunity Act (ECOA), and that it believes there to be the potential for pricing disparities based on race, national origin, and other prohibited factors.\u00a0 Allegations of discriminatory lending practices are deeply troubling, and therefore it is extremely important that we understand the methodologies and analyses used to reach this conclusion.\u00a0 With that in mind, we ask that the CFPB fully respond to all Congressional requests for the raw data and specific methodology used to determine instances of \u201cdisparate impact\u201d and formulate the new guidance.\r\nThe auto dealer industry contributes greatly to our nation\u2019s economy and that of our state and local communities.\u00a0 In particular, auto dealer sales represent about $47 billion annually.\u00a0 Florida ranks as the third-largest state in the country in terms of number of vehicles, the sale of which account for 16 percent of retail sales tax.\u00a0 Furthermore, there are approximately 850 new car dealers in Florida, providing tens of thousands of direct jobs and supporting millions more in related sectors.\u00a0 Auto lending, including the indirect auto financing market, helps many hardworking individuals afford the vehicles they need to access job opportunities and support their families.\u00a0 As a result of the CFPB\u2019s new guidance, we understand that 17,000 price discounters stand to be eliminated from the auto finance marketplace.\u00a0 \r\nPrior to the CFPB\u2019s fair lending guidance bulletin, auto dealers have been able to offer consumers a competitive interest rate through indirect vehicle financing with a third-party lender, such as a bank, credit union, or other financial institution.\u00a0 The ability of auto dealers to negotiate their retail margin in order to provide this service empowers consumers to make an informed decision regarding their financing options.\u00a0 Frequently, it results in them obtaining a lower cost of credit than they would otherwise be able to secure from other creditors.\u00a0 Although the compensation afforded to auto dealers is capped by contract, the totality of the CFPB\u2019s guidance, press release, and reported enforcement actions suggests efforts to remove or significantly limit an auto dealer\u2019s ability to negotiate competitive financing for their customers, and pressure lenders to replace the system of compensation with a flat fee per transaction or other mechanism.\r\nWe have a responsibility to ensure that consumers are best served by a competitive and efficient credit market.\u00a0 While we commend the CFPB for its commitment to addressing unlawful lending practices, we are concerned that Congress has yet to be provided with the complete data and other information necessary to conduct proper oversight of this matter.\u00a0 For example, we note that it is unclear from your responses to date whether the Bureau is including the amount financed amongst the \u201cappropriate analytical controls\u201d used to determine whether a specific policy results in unlawful differences on a prohibited basis. \r\nWe fear that the CFPB\u2019s decision to issue guidance, without public comment or a formal rulemaking process, will significantly restrict consumer choice and services.\u00a0 As you know, a bipartisan majority of the House Financial Services Committee, as well as 22 of our colleagues in the Senate, have written to you expressing similar concerns.\u00a0 We share their request for specific explanations detailing the CFPB\u2019s assessment of disparate impact in the indirect auto financing market, especially the extent to which it studied and considered the potential effects of its guidance on the cost of credit to consumers, auto dealers, and competition in the auto loan market.\u00a0\u00a0\u00a0\u00a0 \r\nIn order to meet the highest levels of transparency and maximize access to credit for consumers in a manner that is fair and equitable, we urge the CFPB to respond to the aforementioned Congressional inquiries as soon as possible.\u00a0 Without finality regarding this guidance, consumers will ultimately bear the cost as auto dealers will remain restricted in their ability to offer them the most competitive auto loan rates.\u00a0 We thank you for your cooperation and look forward to your response.\u00a0\u00a0\u00a0\u00a0 \r\n\r\n    \r\n        \r\n            Sincerely, \r\n            \u00a0\r\n            \u00a0\u00a0 \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Alcee L. Hastings\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Bill Posey\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Ileana Ros-Lehtinen\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Corrine Brown\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            John L. Mica \r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Jeff Miller\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Mario Diaz-Balart\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Debbie Wasserman Schultz\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Theodore E. Deutch\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Richard B. Nugent\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Dennis A. Ross\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Frederica S. Wilson\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Ron DeSantis\r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Lois Frankel\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n        \r\n            Joe Garcia \r\n            Member of Congress\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            Patrick E. Murphy\r\n            Member of Congress\r\n        \r\n        \r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n            \u00a0\r\n        \r\n    \r\n\r\nCongressman Alcee L. Hastings serves as Senior Member of the House Rules Committee, Ranking Democratic Member of the U.S. Helsinki Commission, and Co-Chairman of the Florida Delegation.\r\n###", 1, "2026-03-30T12:14:52Z", "2026-03-30T12:14:52Z"]], "columns": ["url", "title", "date", "year", "month", "party", "chamber", "state", "member_name", "bioguide_id", "domain", "scraper", "source", "date_source", "text", "has_text", "collected_at", "updated_at"], "primary_keys": ["url"], "primary_key_values": ["http://alceehastings.house.gov/news/documentsingle.aspx?DocumentID=364822"], "units": {}, "query_ms": 0.8434068877249956, "source": "dwillis/congress-press", "source_url": "https://github.com/dwillis/congress-press", "license": "MIT", "license_url": "https://github.com/dwillis/congress-press/blob/main/LICENSE"}