Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Auto dealers close to escaping consumer rules

By Jennifer Liberto, senior writer


WASHINGTON (CNNMoney.com) -- Auto dealers are a step closer to escaping increased oversight from a new consumer financial protection regulator that will be created by the Wall Street reform push.

In a nonbinding, largely symbolic motion, the Senate on Monday directed its key negotiators to advocate exempting auto dealers from tougher oversight as they enter negotiations with the House to reconcile Wall Street reform bills.

The motion passed 60-30.

The Senate passed its reform bill last week, which would create a consumer financial protection bureau that will have the ability to craft new rules barring unfair practices with consumer loans, mortgages, credit cards and auto loans.

The Senate bill did not exempt auto dealers. But the House of Representatives bill, passed in December, did exempt them. Those two versions now need to be hashed out into a final, compromise bill.

With Monday's vote, the Senate made it more likely that auto dealers will be able to continue making auto loans without extra regulation -- a move strongly opposed by President Obama and the Department of Defense, which got involved in the issue after military personnel complained about predatory auto-lending practices.

A final decision will be made during the House and Senate negotiations, which are expected to begin in two weeks. To top of page

Index Last Change % Change
Dow 17,873.22 44.93 0.25%
Nasdaq 4,933.51 31.74 0.65%
S&P 500 2,099.06 8.96 0.43%
Treasuries 1.85 0.03 1.54%
Data as of 1:39am ET
Company Price Change % Change
Bank of America Corp... 14.88 0.18 1.22%
Coca-Cola Enterprise... 51.55 0.69 1.36%
Baxalta Inc 45.53 -0.17 -0.37%
Apple Inc 100.35 -0.06 -0.06%
Micron Technology In... 12.31 0.36 3.01%
Data as of May 27
Sponsors

Sections

Janet Yellen hinted again Friday that a June or July interest rate hike is a very real possibility. More

The FBI has opened a national security investigation into the hacking of Bangladesh's central bank amid signs that the hack might have come from North Korea. More

The gender pay gap in the labor market is pretty well documented. But the gender gap also exists in the housing market. More