Jump to content
Create New...

Crackdown sought in auto dealer rip-offs of troops

Recommended Posts

Crackdown sought in auto dealer rip-offs of troops



WASHINGTON — U.S. Treasury Secretary Tim Geithner today embraced calls for tougher consumer protection rules on auto dealers, following complaints from the armed services of dealers ripping off troops and their families.

The move puts the Obama administration against auto dealers, who have fought to be exempt from a proposed Consumer Financial Protection Agency, saying current law was sufficient to deal with any abuses by individual dealers. The House bill that passed last year exempts dealers, while the Senate version under debate does not.

The meeting with Geithner came after the Department of Defense warned last month that the cadre of financial advisers it provides to members of the armed forces often uncovered shady dealing by auto dealers, such as hidden fees in loans, discrimination in lending and failing to pay off liens on trade-ins.

“You still see a lot of things that this country should never put up with, people taking advantage of men and women who serve their country, offering them loans at exorbitant interest rates that they have no prospect of repaying,” Geithner said.

“This is a substantial problem still for the country. It’s not something the American people should put up with.”

The CFPA as envisioned by supporters would regulate all kinds of financial services, from home mortgages to credit cards and auto loans, with the power to pursue companies for bad practices.

The National Automobile Dealers Association has opposed allowing the CFPA to cover auto dealers, saying a new bureaucracy was unnecessary.

“Creating new regulatory mandates on top of the numerous federal and state requirements that already govern auto financing will only drive up costs, limit vehicle financing options and, for many consumers, effectively eliminate their ability to obtain financing to meet their vehicle needs,” NADA chairman Ed Tonkin said earlier this month.



Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Who's Online   1 Member, 0 Anonymous, 76 Guests (See full list)

  • Chevy Estimated Range for Silverado EV Work Truck Raised to 450 miles

    When Chevrolet initially took the wraps off the Silverado EV last year, GM had estimated up to a 400 mile range based on its own calculations.  As the Silverado EV has made its way through development, it went for EPA certification and came back with 50 miles more than GM's estimate.  With this new EPA certification, the Silverado EV has an over 100-mile advantage over its only on-sale competitor the F-150 Lightning Extended Range (320 miles). The Silverado EV will launch first in WT trim with t


    All New 2024 Toyota Tacoma Yearns For Adventure

    The Toyota Tacoma has been the best-selling mid-size pickup in the U.S. for nearly 20 years. Holding such an important place in the lineup, Toyota has been very conservative with updates in the past.  The outgoing generation ran for a full 7 years, but even that was based on a platform that dates all the way back to 2004.  For 2024, the Tacoma sheds the old platform entirely and joins the Tundra and Sequoia on Toyota's new TNGA-F global truck platform.  The 2024 Tacoma is the latest (and final)


    The Ford Ranger Raptor Finally Comes to the US

    After years of being forbidden fruit offered only in overseas markets, Ford has finally deemed the Ranger Raptor worthy enough to bring to the U.S. The biggest reason for the U.S. not getting the prior version was its standard diesel power and the inability of the platform to take a sizable V6 engine. When Ford redesigned the 2024 Ranger (read more about the 2024 Ford Ranger here), they made sure to alter the engine bay and chassis to accommodate a V6. Powering the Ranger Raptor is a 3.0-li


  • Create New...

Hey there, we notice you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.


Write what you are looking for and press enter or click the search icon to begin your search