• March 28th, 2023
  • Tuesday, 09:53:56 AM

Consumer Advocates Warn Against Repeal of Auto-Loan Discrimination Rule


Photo: Courtesy Robert Reich

According to several consumer-backed studies, the color of your skin can make buying a car more expensive.
In 2013, the Consumer Financial Protection Bureau issued a notice that discriminatory auto lending is illegal, but a GOP-led effort in Congress to overturn those protections is gaining traction. The resolution that already passed the Senate targets “dealer markups,” where car dealers charge additional interest on top of what third-party lenders charge.
Alice Vickers, director of the Florida Alliance for Consumer Protection, says she’s seen numerous studies, including from the National Fair Housing Alliance, detailing how auto dealers tend to make decisions based on race.
“Sixty-two percent of the time, nonwhite customers who are more qualified than white counterparts receive more costly insurance pricing options,” she explains.
Republicans are using the Congressional Review Act to make the change while mostly downplaying the research. The House is expected to vote on the measure this week, then President Trump is expected to sign it into law if it passes.
Consumer advocates such as Vickers have come out in fierce opposition, worried that the reversal would actually lead to an increase in discriminatory practices. Those backing the resolution claim that will not be the case. Vickers says if the rollback is successful, consumers, particularly people of color, will have to be more vigilant.
“You need to be very pointed in asking questions and, you know, really probe your auto lender to make sure that you’re getting a good deal,” she says.
Republican lawmakers have ramped up use of the Congressional Review Act to roll back a series of federal regulations.

by Trimmel Gomes

Public News Service – FL

 

 

 

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SUPPORT INDEPENDENT MEDIA

We are all facing our nation’s most challenging moments in history in maintaining our democracy
and freedoms for all people.

Independent media has been under attack in a concerted effort to dismantle free speech and our rights under the U.S. Constitution. Optimism and activism are key factors in moving forward to sustain our freedom of the press.
As an independent media outlet for over 33 years, The Weekly Issue / El Semanario has maintained integrity in educating our readers and engaging our communities in the pursuit of civic responsibility to maintain our American democracy and create economic restoration for all people.

We appreciate your contributions so that we may continue our efforts in offering news content with honesty and integrity and pushing the founding values of our nation.