Say No To Special Interest Loopholes: Auto Dealers Do Not Deserve a Carve Out from Consumer Protection

FOR IMMEDIATE RELEASE

DATE: May 12, 2010

Say No To Special Interest Loopholes

Auto dealers do not deserve a carve out from consumer protection

Washington, DCAmericans for Financial Reform urges the Senate to reject any efforts by special interests to weaken consumer protection, especially Sen. Sam Brownback’s amendment to allow car dealers to skip out on oversight and attempts to weaken state oversight for consumers.

Heather Booth, Director, Americans for Financial Reform: “First Republicans tried to gut consumer protection all together, and that attempt failed miserably. Now they are trying, by any means possible, to chip away at protecting consumers from abusive lenders until there’s nothing left of this oversight. The idea that Senators would consider letting auto dealers – the sellers of one of the most significant purchases Americans might ever make – off the hook is absurd. Republicans, led by Sen. Brownback, are ignoring the repeated opposition from military members, who have seen first hand the bait-and-switch scams these dealers can pull, from community bankers, who realize the importance of a level playing field for all financial players, and from citizens across the country by supporting this amendment. The Senate should reject this amendment and all other attempts to weaken consumer protection, including efforts prevent states from being the first line of defense against abusive practices. By keeping consumer protection strong, we can prevent the next crisis and ensure consumers are not bearing the brunt of deceptive practices that could have easily been avoided.”

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In Case You Missed It:

USA Today Editorial: Put brakes on auto dealers’ bid for special treatment:“While auto loans were not the prime generator of the recent credit bubble, many were sold and securitized the way subprime mortgages were. That’s a recipe for excess.”

Americans for Financial Reform letter Urging Congress to Avoid Carve Outs

Department of Defense letter to Undersecretary Michael Barr, opposing auto dealer exemption