GNYADA July 2015 Newsletter

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For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

CFPB Continues to Target Auto Industry 1

JULY 2015 Volume 25, Issue 4


The Consumer Financial Protection Bureau (CFPB) is continuing to increase its influence upon the consumer financial transactions of car dealerships. Most recently, a final rule was passed by the CFPB extending their supervisory authori- ty to large lenders in the auto industry, including most captive financing sources. The CFPB will be assessing potential risks to consumers and gauging whether auto finance companies are complying with federal consumer financial requirements. During the original Wall Street Reform negotiations, Congress specifically exempted dealers from CFPB jurisdiction because auto dealers are retailers, not banks, with the primary business of selling and servicing cars and trucks. The new CFPB rule continues to observe this exemption, though they continue to exert pressure to regulate dealers through banks and captives. According to the CFPB’s release, they will target the practices of large lenders to ensure compliance with federal consumer financial laws, including the Equal Credit Opportunity Act, the Truth in Lending Act,

the Consumer Leasing Act, and unfair, deceptive or abusive acts or practices.

6,000 lb. Pickups Allowed on Parkways page 3 GNYADA Succeeds In Excluding Dealers from Costly State DFS Oversight page 4 Connecticut Franchise Law Attacked page 6 GMs Sales Performance Standard Under Review page 7

The CFPB's regulation of this new group of lenders results in further intrusion into dealership business practices, through pressure by lenders and captives on dealers. The new rule covering large participants in the auto industry is expected to go into effect 60 days after publication in the Federal Register. The Association contin- ues to monitor activity by Congress and the CFPB, while making the dealer exemption a high priority. GNYADA continues working with NADA to defeat legislation proposed by Senator Elizabeth Warren that would include auto dealers under the CFPB’s authority. The Association’s relationship with key legisla- tors, like Senator Chuck Schumer have helped stop sponsorship of such legisla- tion. Dealers were also extremely helpful in convincing Schumer not to cosponsor Senator Warren’s bill. Efforts to Eliminate Dealer Exemption Fail

Hiring Teen Workers page 8

New NADA Retirement Program page 11

Employment Corner page 12

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York, 11357

NEW DATE: August 3, 2015

Dealer Hotline 718.746.5900

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The Newsletter • July 2015 1

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