Auto dealers won’t be covered under a new consumer regulatory agency after a vote in the House Financial Services Committee exempting them, despite the major role they play in financing car loans.
Among those supporting the Republican amendment that passed Thursday by a vote of 47-21 was Rep. Ed Perlmutter, D-Colo., whose suburban Denver district is populated with some of the metro area’s largest dealerships.
The amendment had been blasted by consumer advocates, who claim that dealers are responsible for originating the majority of new car loans and regularly bilk customers by offering them higher- interest loans than their credit histories would allow.
Otherwise a strong advocate for the new consumer agency, Perl mutter said Thursday the exemption was justified because dealers will still be subject to existing state and federal regulations. Michael Riley, The Denver Post
