The Federal Trade Commissions Proposed Rule for Auto Dealers from the Perspective of Auto Dealers and Auto Finance Companies, with Guests Paul Metrey, National Automobile Dealers Association, and Richard Hackett, Consumer Financial Protection Bureau
The FTC\u2019s proposal would impose a number of new substantive and disclosure requirements on auto dealers in connection with the car buying or leasing process. We first discuss NADA\u2019s comment letter to the FTC on the proposal, including NADA\u2019s concerns with the process used by the FTC to issue the proposal and with the proposal\u2019s disclosure, recordkeeping, website posting, and other requirements. We then discuss the auto finance industry\u2019s concerns with the proposal, including the risks arising from the FTC Holder Rule, the industry\u2019s call for safe harbors, and other steps auto finance companies can take to mitigate risks in connection with ancillary products. We conclude with a discussion of the CFPB\u2019s focus on ancillary products, including CFPB supervisory activity, potential areas of CFPB scrutiny, and the CFPB\u2019s use of its authority to supervise auto finance companies to influence dealer behavior.
John Culhane, a partner in Ballard Spahr\u2019s Consumer Financial Services Group, hosts the conversation.