Phone: 630-495-2282 Fax: 630-495-2260 Map/Directions

NADA seeks CFPB internal memo

July 17, 2015
The Consumer Financial Protection Bureau has been asked to make public an internal memo which, according to the National Automobile Dealers Association, "plainly undermines the agency’s longstanding claims that it is not targeting auto dealers through enforcement actions."
In the June 16, 2015, memo from CFPB officials to bureau Director Richard Cordray, the agency outlined how a proposed settlement agreement with American Honda Finance Corporation would further the agency’s "goal" of "significant[ly] limiting dealer discretion."
Paul Metrey, a lead attorney for the NADA, wrote to the CFPB on July 13 to request a copy of the memo. Its existence was first reported by American Banker.
The NADA’s news release that accompanied the Freedom of Information Act request explains that CFPB actions which are intended to regulate auto dealer business practices are prohibited by the Dodd-Frank Act and are contrary to claims made to Congress by Cordray that the CFPB is aware of and respects Congress’s decision to exclude dealers engaged in indirect vehicle financing from the CFPB’s jurisdiction.