A bill that would limit the U.S. Consumer Financial Protection Bureau’s 2013 auto lending guidance passed the House of Representatives late Wednesday by a 332-96 vote, Automotive News reported today. H.R. 1737 — the Reforming CFPB Indirect Auto Financing Guidance Act — would revoke 2013 auto lending guidance from the CFPB. The guidance suggests lenders should either impose limits on or eliminate dealerships’ ability to adjust, on a case-by-case basis, the amount of compensation they keep for arranging a consumer auto loan, a discretionary practice that the CFPB says can lead to discriminatory loan pricing. The bureau oversees lenders but not auto dealers. Eighty-eight Democrats joined 244 Republicans in voting for the bill. Republicans were unanimous in support of the bill, while Democrats comprised all 96 of the “nay” votes. The bill still faces several hurdles before it could become law. Industry insiders told Automotive News earlier this year that the bill faces an uphill climb in the U.S. Senate. Even if it does pass, it could face a veto from President Barack Obama, who opposes the bill. In that case, a two-thirds majority in both houses would be required to override the president’s veto.
