New Bill Rescinds CFPB's Indirect Lending Reg
Representative Frank Guinta (R-N.H.) has drawn bipartisan support from 31 other fellow House legislators for a bill that would send the CFPB back to the drawing board to develop indirect lending regulation.
“In 2013, the CFPB implemented guidance without providing a public comment period for consumers, small businesses or stakeholders to prevent families and individuals from obtaining auto financing discounts,” Guinta said in a statement about the bill. “From the single, working mother in Manchester, to the small business owner on the Seacoast, to the hunters of the north country – this bipartisan bill will provide as many opportunities as possible for Granite Staters to receive the best financing required to achieve car ownership,” he added.
The legislation would nullify the existing regulation and require the CFPB to request public notice and comment on a replacement regulation, if it developed one. The agency would also have to provide full disclosure of the research used to develop the regulation as well as conduct a study of the regulation’s costs to consumers and small businesses.
Seven other House members co-sponsored the bill when Guinta introduced it on April 13, who include noted credit union supporter Brad Sherman and fellow Democrats David Scott (GA), Daniel Kildee (MI) and Joyce Beatty (OH). Fellow Republicans Marlin Stutzman (IN), Steve Stivers (OH) and Roger Williams (TX) also co-sponsored on the first day.
The second-term Guinta sits on the House Financial Services Committee and its Subcommittee on Financial Institutions and Consumer Credit.
The CFPB has not yet commented on the legislation.