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Dealers not convinced the CFPB understands their business

July 29, 2016
Texas dealer Robert Turner gave Patrice Ficklin, fair lending director at the Consumer Financial Protection Bureau, a piece of his mind following her presentation July 19 at the annual National Association of Minority Automobile Dealers conference in Miami. She took the criticism and responded. 
Turner, who owns two Chevrolet dealerships and a Subaru store, told the CFPB official: "You guys have your view of what we do; I would hope at some point you’d talk to some of us and get our view of what we do." Many dealers, such as Turner, believe the agency ... is out to get them. 
As his dealer colleagues listened intently, Turner asked Ficklin whether she realizes that dealers earn their margin rates from financial institutions the same way "banks earn that discount rate that the feds give them" and that a consumer’s finance rate is not the rate the dealer gets. He said every business buys goods at a wholesale price and sells them at a retail price — that is where the disparity lies. 
Ficklin said the CFPB agrees that dealers provide a valuable service by matching consumers with financial services and that dealers should be compensated for the work they perform. She said the problem is the discriminatory outcomes that result. 
She also noted that she has spoken directly with dealers in sessions sponsored by the National Automobile Dealers Association and the American Financial Services Association.