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Trade Group Commissions Study to Address CFPB's Fair Lending Concerns

November 14, 2013

WASHINGTON, D.C. — To address the Consumer Financial Protection Bureau (CFPB)’s concerns that dealer participation programs pose a “significant risk” of “pricing disparities on the basis of race, national origin, and potentially other prohibited bases,” the vehicle finance industry announced this week it is undertaking an independent review of the matter.

The American Financial Services Association (AFSA) is commissioning the study to assess the effectiveness of the present model and evaluate the costs and benefits of alternative approaches. Researchers are currently being vetted, according to officials.

“[The association] and its members do not tolerate discrimination in any size, shape or form,” said Chris Stinebert, president and CEO of the association. “We take the CFPB’s concerns very seriously and plan to share with them the results of our cost-benefit analysis of the present and alternative dealer participation models.”

Based in Washington, D.C., the AFSA ( is the national trade association for the consumer credit industry, protecting access to credit and consumer choice. Its 350 members include consumer and commercial finance companies, vehicle finance/leasing companies, mortgage lenders, credit card issuers, industrial banks and industry suppliers.


  1. 1. sredeinhcsFI92 [ November 22, 2013 @ 10:42AM ]

    I can't seem to wrap my head around the idea that Americans are still discriminating against others in the 21st century. The CFPB is a good thing, it's nice to know that we as consumers have protection. I get that our business has created this monster, but take a second to think about this...What do you think the difference in markup is between two watches, a "Timex" and a "Rolex". Both watches are just watches, both are well known brands, both will tell you what time it is. The Timex retails at a much lower price point and has less markup. The Rolex retails at a much higher price point and has more markup. My point is that the Rolex has more markup because they market to the consumers with higher incomes, taking advantage of the fact that these consumers will purchase their product because of it's name. At the end of the day there are retailers across the nation, whether they be car dealers or department stores...every city, state, and zip code have a variance in retail pricing, although I would imagine that the majority of them have the exact same costs.


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