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

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →