Removing Barriers Blog

President Signs Resolution Voiding the Bureau's Auto Lending Guidance
Posted May 21, 2018 by Chandler Schuette

Today, the President signed into law a bipartisan resolution that effectively voids a BCFP rule that provided guidance on indirect auto lending. This resolution not only dissolves the Bureau's guidance on indirect auto financing, it also prohibits the BCFP from issuing any similar rule unless expressly permitted to do so, legally. 

“Credit unions, as the original consumer protector, support fair lending and oppose discrimination of any sort, but the bureau’s bulletin was an example of guidance that was not supported by data or research, nor was it issued through the standard rulemaking process,” said CUNA President/CEO Jim Nussle. “Credit unions, particularly small credit unions, bear the negative consequences of poorly tailored rules, and we’re pleased Congress and the President have taken steps to fix this situation.”

CUNA strongly supported the use of the CRA in this situation, and wrote to both Senate and House leadership expressing support when the chambers voted on the joint resolution of disapproval. The resolution passed the Senate in the middle of April and then passed the House of Representatives earlier this month.

Read the Bureau's statement here