U.S. House Passes CHOICE Act
Law would repeal flawed vehicle financing guidance
The U.S. House of Representatives has passed H.R. 10, the Financial CHOICE Act, which includes reform of the Consumer Financial Protection Bureau (CFPB). The bill now heads to the U.S. Senate.
The CHOICE Act, which passed the House by a 233-186 vote, includes a bipartisan provision that is virtually identical to H.R. 1737, an RVDA-backed bill from 2016. This provision would nullify the CFPB's guidance on indirect vehicle financing, which would have limited dealers’ ability to arrange financing.
H.R. 10 also requires the CFPB to: provide public notice and comment before issuing any additional vehicle lending guidance; make publicly available all studies, data, methodologies or other information relied upon to produce the guidance; and study the costs and impacts of the guidance.
The CHOICE Act also brings the CFPB under the regular congressional appropriations process for the first time, another reform RVDA supports. RVDA will keep members informed on the Financial CHOICE Act as it makes its way to the Senate, where it is likely to be modified. RVDA will work with its allies to retain the provisions that would repeal the vehicle lending guidance.