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 16,269.34 210.99 1.31%
Nasdaq 4,704.73 68.62 1.48%
S&P 500 1,935.92 22.07 1.15%
Treasuries 2.18 0.00 0.18%
Data as of 1:46pm ET
Company Price Change % Change
Bank of America Corp... 15.76 0.24 1.51%
Apple Inc 111.23 3.51 3.26%
Netflix Inc 102.25 -3.54 -3.34%
General Electric Co 24.41 0.53 2.22%
Alcoa Inc 9.13 -0.09 -0.98%
Data as of 1:32pm ET
Sponsors

Sections

Stocks go way way down. And then back up. It's enough to make your head spin. But what you need to do is keep a level head and not panic. This doesn't look like a bear market. More

Several currencies have plummeted this year. That's bad in the short term. Long term it could be a good thing though. More

How do you run a successful crowdfunding campaign? Indiegogo's CEO Slava Rubin offers his top tips and mistakes to avoid. More

Millennials are looking for a buying opportunity and the current stock market gyrations seems to offer that. Many are jumping in. More