The Federal Trade Commission (FTC) released a final rule related to vehicle shopping yesterday. AFSA and the Consumer Bankers Association (CBA) submitted a comment letter on the proposed rule in September 2022. We are pleased that a few of AFSA’s comments, mainly relating to the definition of “dealer,” were adopted in the final rule. At the same time we remain concerned that the final rule did not address many serious issues.
For example, the rule does not provide a safe harbor from Holder Rule liability for violations that vehicle finance companies cannot detect from the face of the retail installment sales contract or lease, creating unmanageable risk for vehicle finance companies. Instead, the FTC writes, “… Commission understands that dealers are often in the best position to ensure they have, in the first instance, obtained a consumer’s express, informed consent for charges, there are steps an assignee or other subsequent holder of the consumer credit contract, such as a third-party financing entity, can take to address concerns about contracts obtained without express, informed consent.”
AFSA’s letter also raised concerns that the FTC did not comply with the Administrative Procedures Act (APA) because there was insufficient support for the cost/benefit analysis, as well as a lack of consideration for how the rule would affect small businesses. It’s likely that the rule will be challenged. Lastly, the implementation period for the rule is too short. Dealers have only until July 30, 2024 to comply.
Overall, the rule will increase the time and tedium of vehicle sale and lease transactions, as well. As the National Automobile Dealers Association noted in its statement on the final rule, “This regulation is heavy-handed bureaucratic overreach and redundancy at its worst, that will needlessly lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction.”
FTC Releases Shopping Rule in Time for Holidays
Dec 13, 2023
The Federal Trade Commission (FTC) released a final rule related to vehicle shopping yesterday. AFSA and the Consumer Bankers Association (CBA) submitted a comment letter on the proposed rule in September 2022. We are pleased that a few of… Read the rest
CONFIRMED! INDUSTRY KEYNOTE SPEAKER
Dec 07, 2023
AFSA is pleased to announce Robert H. Kurnick, Jr., Vice Chairman of the Penske Corporation and President of Penske Automotive Group, Inc., as the Industry Keynote speaker at its 2024 Vehicle Finance Conference and Expo.
Kurnick, whose career… Read the rest
A Call for CFPB Clarity
Dec 07, 2023
Earlier this week AFSA encouraged other trade organizations to join a letter requesting that President Joe Biden support clear rules of the road in the financial services industry that take into account both the benefits and costs of regulation.… Read the rest
Director Chopra Testifies on Capitol Hill
Dec 05, 2023
Last week, Congress returned from the Thanksgiving holiday recess and CFPB Director Rohit Chopra testified before the House Financial Services and Senate Banking Committees. While most of the conversation centered around supporting … Read the rest
Industry Expertise | Behind the Wheel: Allied Solutions Reflects on Used Car Week
Dec 05, 2023
AFSA’s Industry Expertise allows Business Partners to provide thought leadership and best practices information directly with AFSA member companies. For more information about taking part, contact Dan Bucherer.
Behind the Wheel: Allied… Read the rest
Featured Business Partner | PayNearMe
Dec 01, 2023
The featured Business Partner for the month of December is PayNearMe.
PayNearMe is the modern, reliable payments platform that facilitates debit, credit, ACH and mobile-first payments, including Cash App, PayPal, Venmo, Apple Pay and … Read the rest
NYC Department of Consumer and Worker Protection Comment Letter
Nov 30, 2023
This past week, AFSA’s state government affairs team sent a comment letter to the New York City Department of Consumer and Worker Protection (DCWP) on the updated proposed amendments to its rules relating to debt collectors. In the letter … Read the rest
Financial Fragility Increased in 2023 While Credit Access Decreased
Nov 30, 2023
New survey results from the Federal Reserve Bank of New York highlight recent trends in financial fragility and access to credit. Unfortunately, the news is not good, especially for younger households and those with weaker credit histories.… Read the rest
Being a Bill on the Hill is Tough
Nov 29, 2023
AFSA monitors every bill that might affect its members. This includes bills out of the typical committees of jurisdiction – the House Financial Services Committee and Senate Committee on Banking and Urban Development – as well… Read the rest
Industry Pulse
Nov 29, 2023
What is the state of the vehicle marketplace and where do consumers stand as they plan for 2024? How are overseas markets and industry players thinking about their forward-looking strategies and the U.S. market? And where are the U.S. and… Read the rest