Tell Your Senators to Vote "NO" on Repealing Lending Discrimination Protections

Focus Area: 

The U.S. Senate is set to vote this Tuesday, April 17, 2018 on a measure, S.J. Res. 57 that aims to undo a 2013 indirect auto lending guidance issued by the Consumer Financial Protection Bureau. The guidance reminds lenders that the law forbids racially discriminatory auto lending practices.

The CFPB guidance addresses “dealer markups.” For consumers financing car purchases, dealers have discretion to increase the interest rate offered by a lender and keep some or all of the difference as compensation. The evidence shows that "dealer markups" are racially discriminatory.

Please contact your Senators and tell them to oppose S.J. Res. 57. Senate: (202) 224-3121

This vote to rescind the guidance would not only endorse discrimination in lending, but it would also open the door to sweeping regulatory chaos. The Congressional Review Act (CRA)—which bypasses regular procedural order by requiring only a simple majority vote in both chambers of Congress—has never been used to undo agency guidance, and it was never intended to be used that way. A vote for S.J. Res. 57 could open all regulatory guidance issued since the 1996 passage of CRA to swift Congressional override by a simple majority vote.  Even industry players have welcomed federal agency guidance for the clarity they provide.

Please call your Senators and tell them that S.J. Res. 57 has far-reaching consequences. It would encourage discriminatory lending and open the door to regulatory chaos!

You can also:

  • Read and share a one-page explanation of discrimination in auto lending and S.J. Res. 57 here.
  • If you belong to a nonprofit organization, please sign this letter opposing S.J. Res. 57 because discrimination in auto lending has long been, and still is, a widespread problem.
  • If you belong to a nonprofit organization, please sign this letter that describes the sweeping regulatory uncertainty stemming from aiming to undo guidance through the Congressional Review Act (sign on at end of the letter).
  • Call your Senator, and urge others to do the same!
  • Please share with your networks!

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