President Donald Trump signed into law a Congressional resolution disapproving a rule issued by the Bureau of Consumer Financial Protection in 2013 that sought to keep dealers from indiscriminately marking up auto loan rates.
The resolution of disapproval (S.J. Res. 57) – introduced Sens. Jerry Moran (R-KS) and Pat Toomey (R-PA) – was approved by the Senate in May. Later last year, the U.S. Government Accountability Office determined that the CFPB rule could be subject to Congressional review. The rule was initially issued by the CFPB to prevent racial bias in auto dealers setting loan rates for loans that they provided customers.
CFPB Acting Director Mick Mulvaney agreed with the resolution of disapproval.
“I thank the President and the Congress for reaffirming that the Bureau lacks the power to act outside of federal statutes. As an executive agency, we are bound to enforce the law as written, not as we may wish it to be. In this case, the initiative that the previous leadership at the Bureau pursued seemed like a solution in search of a problem. Those actions were misguided, and the Congress has corrected them,” Mulvaney said.
Mulvaney added that the bureau would continue to fight unlawful discrimination.
“We will vigorously enforce fair lending laws in our jurisdiction and will stand on guard against disparate treatment of borrowers. I am heartened that the people, through their elected representatives, have corrected this instance of Bureau overreach. I look forward to working with the Congress to bring much-needed structural accountability to the Bureau so that our cherished democratic principles are supported, and the rights of every American consumer are always protected,” Mulvaney added.
House Financial Services Committee Chairman Rep. Jeb Hensarling (R-TX) applauded the move.
“It is the Bureau’s job to enforce law, not make it. That is Congress’s job. I’m glad Acting Director Mulvaney recognizes this, and I look forward to continuing to work with him to repair the damage to the rule of law and the trampling of due process done by his predecessor,” Hensarling said.