CFPB Targets Auto Lending ‘Unintentional Discrimination’, Ignores Its Ownposted July 14, 2015
July 7, 2015 – Washington, D.C. – The US Consumer Coalition (USCC) released the following statement in response to news that the Consumer Financial Protection Bureau (CFPB) plans to cite American Honda Finance Corp., Toyota Motor Credit Corp., and Nissan Motor Acceptance Corp. beginning this month for “unintentional discrimination.” Recently, Toyota Financial Services said it has no plans to change its use of dealer reserve.
“The irony of the CFPB’s decision is that while the CFPB plans to cite three major automobile lenders for unintentional discrimination, within their own agency there appears to be rampant intentional discrimination,” said USCC senior advisor Brian Wise.
“In a June congressional hearing, Chairman Sean Duffy (R-WI) and members of the House Financial Services Subcommittee on Oversight and Investigations brought national attention to multiple cases of discrimination inside the CFPB. The CFPB’s proposed consent orders against these auto dealers are unbelievably brazen and hypocritical in light of the Bureau’s own long-standing, internal issues with discrimination. A recently conducted USCC/Zogby poll found bipartisan outrage over the CFPB’s discriminatory practices.
“CFPB needs to clean up its own mess before it can credibly attempt to enforce regulations on others. Instead of creating problems in order to solve them, the agency should focus its attention on protecting Americans’ right to access the products and services they want and need.”
The US Consumer Coalition (USCC) is a grassroots consumer advocacy organization working to protect and expand access to free-market goods and services.