President Obama: Veto Legislation that Allows Car Dealerships to Racially Discriminate Against Customers

In 2013, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice ordered Ally Bank to pay $80 million to the victims of discriminatory auto loan practices, $18 million in penalties for their behavior, and were told to Monitor dealer markups to prevent future discrimination or eliminate dealer markups altogether. An investigation revealed that the 235,000 borrowers impacted by these practices were people of color (African-American, Hispanic, and Asian/Pacific Islander.)

On November 18, 2015, 244 Republicans and 88 Democrats in the US House of Representatives passed H.R. 1737, “Reforming CFPB Indirect Auto Financing Guidance Act.”  This bill undermines the ability of the CFPB to address discrimination in vehicle financing.

The mission of the Consumer Financial Protection Bureau (CFPB) is to create a more fair and equitable marketplace for all of America’s consumers.

While President Obama has expressed his opposition to this bill, he stopped short of threatening to use his veto power should it pass the Senate and make it onto his desk.

This bill would make discrimination in auto lending lawful. With dealer interest rate markups, Car dealers receive a substantial bonus from lenders for increasing the interest rate above that for which the borrower otherwise qualifies. According to the Center for Responsible Lending rate markups cost Americans $25.8 billion over the lives of their auto loans. 


If you believe that the Consumer Financial Protection Bureau is doing a fine job of regulating discriminatory practices and don’t want dealerships to be allowed to markup interest rates based on the color of the ethnicity of the borrower, please sign this petition and tell President Obama to veto this legislation should it reach his desk, for the protection of borrowers of color.

Dear Mr. President,


I'm very concernd that HR 1737 will pass the Senate and am asking that you veto this bill should it make it onto your desk.


 This legislation would nullify regulatory instructions issued by the Consumer Financial Protection Bureau in 2013. Those instructions were an effort to counter longstanding discriminatory trends in auto financing.


For the protection of borowers of color and the relevance of the Consumer Financial Protection Bureau, please veto this legislation.


 [Your comments here]


Sincerely,


[Your name]

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