WASHINGTON, D.C.— Amanda Fischer, Policy Director and COO of Better Markets, issued the following statement in connection with today’s filing of a comment letter to the Consumer Financial Protection Bureau (CFPB or Bureau) on proposed changes to the “larger participant” definition, which would allow certain auto lenders to escape Bureau oversight:

“The ability to get an auto loan may make or break an individual’s opportunity to access employment, education, houses of worship and family and friends. Sustainable, legally-compliant auto lending both allows families to thrive and facilitates competition and economic growth.

“The CFPB’s proposal to exempt subprime auto lenders from the possibility of Bureau supervision should be rejected. Better Markets’ analysis of the proposal found that under one scenario, the CFPB would be exempting from prospective oversight auto lenders where the Bureau previously recovered nearly $75 million in restitution and penalties affecting 1.36 million customers, including more than 50,000 servicemembers. That proposal would inevitably make it more difficult for consumers to get redress from improper and predatory practices, as they have in the CFPB’s past.

“Importantly, the Bureau’s proposal specifically seeks to provide giveaways to ‘specialty’ auto finance companies and Buy-Here-Pay-Here lenders, who are more likely to offer higher interest rate and longer duration loans, which result in higher rates of repossession. Rural and servicemember borrowers are also more likely to be served by these lenders and harmed by this proposal.

“For the reasons Better Markets documents in its comment letter, this proposal should be rejected.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.