President Donald J. Trump signed into law the bill to repeal the Consumer Financial Protection Bureau ("CFPB") regulatory guidance on auto-loan financing. The House of Representatives previously voted to withdraw the guidance using Congressional Review Act authority, and the bill was sent to President Trump for his signature.
As previously covered, the guidance allowed the CFPB to pursue legal claims against car dealerships that allegedly charged minority consumers higher interest rates on their auto loans. Opponents of the guidance argued that the CFPB violated the Administrative Procedures Act by enforcing the guidance rather than adhering to the designated rulemaking process.
House Financial Services Committee Chairman Jeb Hensarling (R-TX) lauded the action and asserted that it is indicative of a new era for the CFPB, saying "Gone are the days of a rogue Bureau using its unchecked powers to sidestep due process and harm the very consumers it is charged with protecting."
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