President Donald Trump has signed legislation rolling back auto-lending guidance designed to protect minorities from discrimination by car dealers.
Congress voted last month to overturn guidance from the Consumer
Financial Protection Bureau (CFPB) that targeted “dealer markups” –
interest rate hikes that auto dealers place on third-party auto loans to
make a profit. Mr Trump signed the bill into law on Monday in a private
session.
Studies have shown minorities are regularly charged more for dealer
markups than white buyers with similar credit. The CFPB warned dealers
in 2013 against using these markups, saying they could lead to a lawsuit
from the agency. Since then, the bureau has penalised major companies
like Honda, Toyota, and Ally Financial for lending discrimination.
Click here for the full article.
No comments:
Post a Comment