NIADA Praises House Passage of Financial CHOICE Act
June 12, 2017—The National Independent Automobile Dealers Association (NIADA) said the U.S. House of Representatives took a major step toward creating more opportunity and accountability in the nation's financial markets when it passed the Financial CHOICE Act of 2017 by a 233-186 vote.
The bill, introduced by House Financial Services Committee chairman Jeb Hensarling (R-Texas), would overhaul the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and make substantial reforms to the Consumer Financial Protection Bureau.
The bill has been a primary focus of the National Independent Automobile Dealers Association's advocacy efforts and was one of NIADA's top legislative priorities as part of its annual Day on the Hill during the National Leadership Conference and Legislative Summit in Washington D.C. last September.
"NIADA and its members have long advocated for the need to reform the over-burdensome regulatory framework created by the Dodd-Frank Act, including the unaccountability and overreach of the Consumer Financial Protection Bureau," NIADA CEO Steve Jordan said. "We applaud the efforts of the House of Representatives, especially Chairman Hensarling, to bring about these necessary changes. We look forward to working with lawmakers in the Senate to move the bill forward."
NIADA's support for the Financial CHOICE Act centers around three important points.
- The bill would restructure the CFPB to make it accountable to Congress and the American people. It would subject the bureau to expanded congressional oversight and judicial review, and would be funded through the congressional appropriations process rather than automatic funding through the Federal Reserve.
- The bill would protect consumers' ability to resolve differences with businesses through arbitration which can be faster, cheaper and more efficient than the courts.
- The bill would revoke the CFPB's anti-consumer indirect lending guidance document, which would have raised the cost of car and truck loans by restricting auto dealers' ability to discount credit. The bill would require the CFPB to obtain public comments and consider the cost of credit to consumers before issuing anything similar in the future.
The Act will now be considered by the Senate. NIADA strongly urges the Senate to pass the bill and send it to the President to sign into law.