General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Senate just voted to kill a policy warning auto lenders about discrimination against minority bo
The Senate just voted to kill a policy warning auto lenders about discrimination against minority borrowersThe Senate on Wednesday voted to kill a five-year-old Obama administration policy warning auto lenders not to discriminate against minority borrowers.
The legislation, which passed 51 to 47 largely along party lines, is the latest Republican rebuke of the Consumer Financial Protection Bureaus history of aggressive tactics. Sen. Joe Manchin III (W.Va.) was the only Democrat to vote in favor of the measure.
The auto industry complained for years about the CFPB guidance, which they said was unfair.The CFPB wrongly used its overreaching, indirect auto-lending guidance as an enforcement weapon, proceeding down the path of an aggressive enforcement action in search of market-tipping settlements, said Sen. Jerry Moran (R-Kan.), who sponsored the legislation.
Democrats and consumer advocates cautioned that rescinding the CFPB guidance would encourage bad behavior in the more than $1 trillion auto finance market. Many auto dealers are actively discriminating against people of color. This behavior is pervasive, and the CFPBs guidance would help to end it, said Karl Frisch, executive director of the consumer watchdog organization Allied Progress. They may try to dress it up with political spin, but today the Senate endorsed discrimination.
https://www.washingtonpost.com/news/business/wp/2018/04/18/the-senate-just-voted-to-kill-a-policy-warning-auto-lenders-about-discrimination-against-minority-borrowers/?utm_term=.ce60f4847c36
unblock
(52,230 posts)this is not even about forcing anyone to do anything.
it's merely *guidance*. just a suggestion.
but hey, suggestions are a step down a slippery slope to "aggressive enforcement actions", so we can't have that.
but here, let me shove a picture of a fetus in your face.
octoberlib
(14,971 posts)lawsuits. All the lawsuits and settlements paid out just shows how much that guidance was needed.
Eliot Rosewater
(31,112 posts)octoberlib
(14,971 posts)Eliot Rosewater
(31,112 posts)octoberlib
(14,971 posts)loans to minorities. This is about Manchin's donors.
Eliot Rosewater
(31,112 posts)octoberlib
(14,971 posts)LanternWaste
(37,748 posts)Such is the allegation. Unsupported of course... but without a narrative, we have little else.
Eliot Rosewater
(31,112 posts)hand will advocate for people to work like DOGS to protect the seat and if that means supporting him, so be it.
LanternWaste
(37,748 posts)The sub-prime auto debt being repackaged and sold is almost double that from a year ago (just under two billion today), while the losses on these loans have increased from just over 4% to 8% today. All it will take is one lender losing access to the market.
Not to say it would ever reach the magnitude of the housing crises of 2008 (a magnitude of difference of scale), but the GOP is putting those same broken pieces back into play.
octoberlib
(14,971 posts)Thanks for the info.
lpbk2713
(42,757 posts)Not a surprise given the prevailing climate in DC.