Predatory lending goes beyond the mortgage industry and over the last couple of years several lawsuits have been filed against the car loan industry and car dealerships for their race based pricing. But instead of regulating discrimination when it comes to ‘color’ based loans, there are 65 Democrats siding with the Republican on a new bill that will allow car dealerships to charge people of color more money.
According to Huffington Post, Bill HR1737 would allow markups of car prices and loans, which have historically been aimed and non-white consumers.
From the Huffington Post:
The CFPB issued formal regulatory guidance in 2013 encouraging banks to get rid of the markup interest rate system as a way of compensating dealerships for issuing car loans. The CFPB said that banks could continue the markup practice if they took steps to ensure that they would not regularly overcharge borrowers based on race or national origin. The agency has since taken Honda and Ally Bank to task for violating that guidance and overcharging borrowers of color. The CFPB has returned hundreds of millions of dollars to customers who paid higher rates due to no other factor than their race or national origin.
Lobbyists for the auto industry are now trying to overturn the agency’s anti-discrimination rule. One major exception to the support from dealers and lenders is the National Association of Minority Automobile Dealers, which is formally opposing the bill.
“Car dealers and lenders are attacking the guidance because they do not want the CFPB to enforce antidiscrimination laws in car lending,” the nonprofit group Americans for Financial Reform wrote in a September letter to lawmakers. “They have known for decades that car dealer markups lead to discriminatory lending, and they would prefer the CFPB ignore this particular injustice.”
Democratic supporters of the bill include Reps. Ed Perlmutter (D-Colo.), David Scott (D-Ga.), Brad Sherman (D-Calif.), Daniel T. Kildee (D-Mich.), Joyce Beatty (D-Ohio), Sanford Bishop Jr. (D-Ga.), Jim Cooper (D-Tenn.), Lois Frankel (D-Fla.), Ann Kuster (D-N.H.), Kyrsten Sinema (D-Ariz.), Kurt Schrader (D-Ore.), Tim Ryan (D-Ohio), Daniel Lipinski (D-Ill.), Tammy Duckworth (D-Ill.), Madeleine Bordallo (D-Guam), Patrick Murphy (D-Fla.), Brad Ashford (D-Neb.), Henry Cuellar (D-Texas), Frederica Wilson (D-Fla.), Gene Green (D-Fla.), Cheri Bustos (D-Ill.), Peter Welch (D-Vt.), Alcee Hastings (D-Fla.), Sheila Jackson Lee (D-Texas), Suzan DelBene (D-Wash.), Ruben Hinojosa (D-Texas), Steve Israel (D-N.Y.), Eric Swalwell (D-Calif.), Ron Kind (D-Wis.), David Loebsack (D-Iowa), Loretta Sanchez (D-Calif.), Dina Titus (D-Nev.), Marc Veasay (D-Texas), Julia Brownley (D-Calif.), Juan Vargas (D-Calif.), Timothy Walz (D-Minn.), Filemon Vela (D-Texas), Michael Doyle (D-Pa.), Gerald Connolly (D-Va.), Bill Pascrell (D-N.J.), Gwen Graham (D-Fla.), Derek Kilmer (D-Wash.), Kathleen Rice (D-N.Y.), Robert Brady (D-Pa.), Joe Courtney (D-Conn.), Elizabeth Esty (D-Conn.), Tulsi Gabbard (D-Hawaii), Mark Takai (D- Hawaii), Jim Costa (D-Calif.), Collin Peterson (D-Minn.), Norma Torres (D-Calif.), Debbie Wasserman Schultz (D-Fla.), Mike Quigley (D-Ill.), Ted Lieu (D-Calif.), Beto O’Rourke (D-Texas), Ann Kirkpatrick (D-Ariz.), Jared Huffman (D-Calif.), Pete Aguilar (D-Calif.), Alan Grayson (D-Fla.), Kathy Castor (D-Fla.), Ablio Sires (D-N.J.), Corrine Brown (D-Fla.), Donald Norcross (D-N.J.), Sean Patrick Maloney (D-N.Y.) and Sam Farr (D-Calif.).