Senate to review CFPB’s indirect auto lending bulletin; NAFCU keeps pressure on reg relief
The Senate on Tuesday, by a 50-47 vote, adopted a motion to proceed to a measure that would repeal the CFPB’s 2013 bulletin regarding indirect auto lending under the Congressional Review Act (CRA). Use of the CRA in this way could potentially open up more opportunities for credit union regulatory relief down the road.
Even though the CFPB bulletin was issued in 2013, Republicans are invoking the CRA based on a Government Accountability Office (GAO) finding that the CRAcan be used in this case because the CFPB’s bulletin was generally enforced by the bureau the same way as a rule, yet was never submitted to Congress for review as is protocol for all rules created by regulators. Because Congress never reviewed the bulletin, the CRA’s 60-legislative-day clock never started, thus never expired.
When the bulletin was issued, NAFCU argued that it potentially set the stage for making indirect lenders, including credit unions, liable for fair lending violations by auto dealers.
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