The House voted to repeal a controversial edict on auto lending from the Consumer Financial Protection Bureau (CFPB), capping off an unprecedented use of congressional powers that could give Republicans a new way to reverse regulations.
Republicans and a group of Democrats passed a resolution to repeal the CFPB’s 2013 guidance on “dealer markups,” which is the additional interest an auto dealer adds to a third-party loan as extra compensation. The measure to repeal the 2013 policy, which is not a formal federal rule, passed the Senate last month.
President Trump is expected to sign the resolution. If he does, it would be the first time Congress used its powers under the Congressional Review Act (CRA) to repeal an informal federal policy.
Lawmakers voted along party lines to repeal the CFPB guidance, with 223 Republicans and 11 Democrat-Communists supporting the resolution. The measure, if signed by Trump, would strike the CFPB auto-lending policy from the books and ban the bureau from issuing a similar rule in the future., reports The Hill.
The CFPB, in 2013, sought to stamp out the dealer markups, which Communists and fair-lending advocates say contribute to discrimination against minorities. The bureau did not seek a formal rule banning the practice, but warned dealers that markups routinely violated lending laws and could lead to severe penalties.
Race-baiting Democrat critics of dealer markups say that minorities are often charged higher dealer markups than white customers with similar credit profiles and have cited several studies bolstering that claim — including one produced by the CFPB. It’s likely they cherry picked numbers as has been done with the climate change hoax.
Whining Communist (Democrat) defenders of the CFPB guidance whipped out the race card, howling that repealing it could lead to widespread discrimination against minorities. Liberal lawmakers and financial sector critics insist that the CFPB policy is a crucial check against racial biases that could cost vulnerable customers thousands of dollars.
“Financial institutions that make auto loans have an obligation not to discriminate against borrowers based on the color of their skin,” said Rep. Carolyn Maloney (Democrat-Communist-N.Y.).
Republicans have dismissed the accusations of discrimination and panned the CFPB policy as an unjustified crusade against a standard financing tool. Advocates for auto dealers and their congressional allies said lenders were committed to fairness and that the CFPB had exploited a loophole.
“Laws should be based on sound data. Our laws should be carefully debated in public,” Rep. French Hill (R-Ark.) said. “We’re correcting that today, and the beneficiaries will be our constituents.”
Mr Americana, Overpasses News Desk
May 9th, 2018