BROWNBACK AMENDMENT VOTE POSTPONED

In a positive development, your intense grassroots efforts in support of the Brownback Amendment have caused the vote on the amendment to be postponed to next week.

It appears that (Obama’s) Treasury Department, who opposes this amendment, believes dealers now have the votes to enact the measure. Late yesterday, it was agreed that the amendment would be pulled until later in the debate on the CFPA legislation, maybe as late as next week. The current vote count doesn’t definitively prove that dealers have the votes; however, this delay is considered an early win…not a win that can be relied on completely because support for the Brownback amendment is still is very tight.

With the White House’s strong opposition, Senators still need to hear from dealers about the importance of dealer-assisted financing and how the Bureau of Consumer Financial Protection would threaten the convenience and competition in auto lending that currently exists today.

Since Senator McCaskill will be home over the weekend, most likely, please make an effort to contact her, preferably at every office, using the office information below. When contacting her office, stress the following points:

The Amendment Has Bipartisan Support
• Democratic Senators have indicated they would support the Brownback Amendment if changes are incorporated ensuring that any financial activity unrelated to automotive retailing by dealers would be regulated by the CFPB. Senator Brownback has made these changes.
• The companion House amendment (the “Campbell Amendment”) passed the House Financial Services Committee on a bipartisan vote of 47-21, and was included in the House-passed Wall Street reform bill.
The Amendment is Pro-Consumer Because It Keeps Auto Credit Affordable
• Dealer-assisted financing provides more convenience, more competition, and more choices for consumers. Because dealerships have multiple relationships with lenders (community banks, local credit unions, national banks, and captive finance companies), they are able to help find consumers the best rate.
• Consumers can always rely on their own banking relationships, but dealers can regularly meet or beat the bank or credit union rate.
The Amendment Strengthens Consumer Protections
• Under the Brownback Amendment, every auto lender and auto loan would be directly regulated by the CFPB. The banks, credit unions, buy-here-pay-here dealers, and finance companies that fund auto loans would be fully regulated by the CFPB. Dealers are not banks. They help arrange financing and help consumers find affordable credit. This competition helps keep auto financing affordable.
• The Brownback Amendment expressly protects all existing federal consumer protection statutes that govern dealer-assisted financing. Dealers’ retail financing activity would continue to be effectively regulated by the Federal Reserve Board and the Federal Trade Commission and 50 state consumer protection agencies. Dealers would continue to be subject to the full range of federal laws and regulations that currently apply.