ABA Consumer Lending Regulations
Previously, I have spoken/written about the resurgence on consumer advocacy groups under the direction of U.S. Public Interest Research Group appearing at both the state and federal level, pushing governing bodies for stricter consumer lending laws, where the Obama-era Consumer Financial Protection Bureau left off. Today's news is about a success in defending against one of these regulations.
The American Bar Association - Consumer Law Section, sent a resolution to the broader association that would urge governments at all levels to further regulate and restrict dealer-assisted financing on motor vehicle purchases. Evidently, while not pushing any particular restriction, the feeling is that indirect lending continues to resemble the wild west, even after the implementation of consumer protection mechanisms like Dodd-Frank and the creation of the Consumer Financial Protection Bureau. Colorado dealers surely recall that this state is further regulated by Colorado's Uniform Consumer Credit Code, enforced by the state Attorney General.
However, during the meeting of the ABA House of Delegates, this resolution was withdrawn by its proponents. This is the third time that such a resolution has been withdrawn in the face of opposition from the business and legal communities.
We will keep you updated as conversations at a compromise between the sides progress.