Brownback to offer bill exempting auto dealers from consumer financial office

The office is at the heart of the financial overhaul effort, and Brownback’s (R-Kansas) amendment will set off a fight with the Obama administration and consumer advocates who have pushed to keep auto dealers under the new office.

The National Automobile Dealers Association (NADA) lobbied heavily in the House and was successful in exempting dealers from the financial bill that passed in December.

“Brownback is looking to introduce language similar to what passed in the House so that the vast majority of transactions at auto dealerships aren’t subject to additional banking regulations,” said Brian Hart, spokesman for Brownback. “Auto dealers are retailers, not banks, and are already subject to a host of federal and state regulations that protect consumers.”

NADA on Tuesday sent out an e-mail to members supporting the amendment.

“Auto dealers did not cause the credit meltdown, and auto loans did not contribute to the worst financial crisis since the Great Depression,” said David Regan, vice president of legislative affairs at NADA. “Financial reform legislation should focus on what led to the economic crash in 2008, and not be used as a means to increase regulation on dealers.”