Dealer Exemption in Financial Oversight Bill Altered to Address Military's Concerns
WASHINGTON - A Senate proposal to exempt car dealers from oversight by a proposed consumer protection agency has been changed to add a requirement that military families' complaints about dealers be monitored and shared by the new agency, Automotive News reported.
Under the new proposal, filed by Sen. Sam Brownback, R-Kan., the proposed agency's military liaison office would coordinate with the federal agencies that now oversee dealers to ensure that these complaints are addressed.
But under the Brownback plan, investigations of these complaints and the devising of rules affecting dealers would remain with the current oversight agencies -- the Federal Reserve and Federal Trade Commission.
“The addition was made to address concerns raised by some military groups,” Brownback spokeswoman Becky Ogilvie said today.
Bailey Wood, a National Automobile Dealers Association spokesman, said the changes in the proposal would still “prevent a new agency from adding an additional layer of rules over dealers.”
The Military Officers Association of America, which has opposed the Brownback amendment, said it continues to do so even after the change.
"Senator Brownback’s change fails to provide any additional protections for servicemembers and their families from unscrupulous dealers and places responsibility directly onto the troop to identify fraud and avoid being taken advantage of," said association spokesman Michael F. Hayden, a retired Air Force colonel.
The Senate vote on the amendment is expected to be close, and it is unclear how many votes will be swayed by the changes.
The U.S. Treasury Department has been leading a coalition of military, banking, consumer and civil rights groups against the Brownback amendment. The agency declined to comment today.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →