financialservices.house.gov

Cmte Financial Services (R)
Contact:


Hensarling Applauds Reversal of Harmful CFPB Action on Auto Lending

Washington, Apr 18 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement on the Senate’s use of Congressional Review Authority to repeal the CFPB’s controversial 2013 indirect auto lending guidance.

“The CFPB’s guidance on auto lending is a perfect example of everything that was wrong with the agency under its former director, Richard Cordray, and the danger that comes from allowing federal regulators to side step the will of Congress. Not only did the Bureau abuse and exceed its legal authority in regulating auto dealers – which the law explicitly states the CFPB is not permitted to do – it then failed to afford due process to regulated companies under the Administrative Procedures Act. And, to top it all off, studies showed that the rule could lead to many credit-worthy borrowers paying more for their auto loans.  The House voted decisively last Congress to repeal this guidance and require future efforts to go through public notice and comment.  I applaud my colleagues in the Senate for standing up for the rule of law, and I look forward to finally repealing this harmful and flawed bulletin very soon.”