John C. Redding quoted in Auto Finance News article, "Senate bill targets CFPB rule curbing racial bias at dealerships"
Auto Finance NewsJohn C. Redding
John C. Redding was quoted on April 17, 2018 in an Auto Finance News article, "Senate bill targets CFPB rule curbing racial bias at dealerships," which discussed a bill that seeks to eliminate the Consumer Financial Protection Bureau’s caps on how much auto dealers are allowed to increase interest rates on indirect auto loans.
The article stated, "The rule was designed to eliminate or lessen racial discrimination at dealerships, however a February study from the National Fair Housing Alliance found that non-white testers were subject to discriminatory treatment and pricing 'at an alarming rate.' The study of a small sample of dealerships in Virginia found that a majority of non-white borrowers paid an average of $2,662 more for a new vehicle over the life of a loan, despite being more creditworthy than their white counterparts. The CFPB’s bulletin initially was just a restatement of laws already found in the Equal Credit Opportunity Act, however, it has since been made a rule subject to Congressional approval."
Redding added, "The industry, since the day the bulletin was published, has pushed back on it, and I completely understand why, given what we saw with the investigations, settlements, and four consent orders that took place. If you get rid of the bulletin, I’m not sure it changes a whole lot at the bureau except for the ability of industry to point at the bulletin and say, ‘I did everything you told me to do in your rule, and yet you are coming after me for doing exactly that.’"