From: Detoit Free Press
The leader of the nation’s car dealers are fighting federal regulations that would restrict dealers ability to charge varying rates for higher risk loans.
“The government is trying to take away a customer’s right to get a discount,” Forrest McConnell, chairman of the National Automobile Dealers Association told the Automotive Press Association today. “The current system saves customers money, period.”
The Consumer Financial Protection Bureau, created in response to abuses by mortgage lenders, payday lenders and others leading up to the 2008 financial crisis, wants to eliminate dealers’ ability to tinker with in-house financing rates.
The CFPB says some dealers are artificially marking up rates to squeeze higher payments out of customers. It wants flat fees for dealers when they place a loan with buyers, instead of fees that are tied to the size of the loan.