It's no secret insurance companies and banks have the ears of politicians. But who knew car dealers, and their lobbyists, were so powerful?
On Oct/ 22, the House Financial Services Committee approved an amendment (the vote was 47 to 21) to keep automobile dealers under federal and state laws governing vehicle financing. The vote also granted dealers exemption from a new government consumer protection agency heavily lobbied for by the White House.
Rep. John Campbell R-California, sponsored the amendment to the Consumers Financial Protection Agency Act that will hold dealers harmless from scrutiny of the proposed CFPA .
The Campbell amendment paves the way for dealers, many of whom sell expensive and often heavily financed products, to side-step HR3126, the Consumer Financial Protection Agency bill that works to ban deceptive practices, ensure safeness and promote transparency.
The National Automobile Dealers Association spearheaded the grassroots campaign. After the act passed with the attached amendment, David Westcott, chairman of NADA's Government Affairs Committee, and a multi-franchise dealer in North Carolina said "NADA and dealers applaud the overwhelming bipartisan support for the Campbell Amendment. It makes sense to exclude dealers. Dealers had absolutely nothing to do with the credit crisis."
How do you think this will affect you? Do you think it will impact your next vehicle purchase?