If you’re a person of color taking out a car loan, odds are you’ll pay a significantly higher interest rate than you would if you were white. Since 2013, the Consumer Bureau has begun to tackle this long-neglected, well-documented problem, both through enforcement and by issuing guidance on fair lending law compliance for lenders working with dealerships to finance auto purchases. Those who are looking to get a loan for a car can use this calculator to estimate your car payment and use the Loan Review HQ website to see the credibility of lenders and the transparency of their practices. Alternatively, there are ways to lease a car instead. It should be noted that there is a lot of legal understanding that needs to be considered first, a summary of which can be read here: https://www.swapalease.com/lease101/guide/chapters/lease-basics/
Many Americans are unfortunately discriminated against when it comes to both of these factors, be it loans or leases, and so may seek to swap their lease or fight back against a falsely led decision. Speaking of, Congress should be praising the Bureau for its fight against auto-loan discrimination. Instead, a shameful number of members of the House voted last month to curtail the CFPB’s work in this area.
On November 18, the House passed a bill, H.R. 1737, which would invalidate the existing guidance and impose burdensome and unnecessary new procedures on any future CFPB efforts to address the issue. The final vote was 332-96, with 88 Democrats voting in favor.
AFR and our allies will do all we can to keep this bad bill from gaining traction in the Senate or being added as a policy rider to a year-end spending measure. Thus far, over 52,000 Americans have signed petitions urging Congress to reject HR 1737. (You can add your name to AFR’s petition here). And ColorOfChange, Working Families, Center for Popular Democracy and Americans for Financial Reform (AFR) delivered over 50,000 of those petitions to the offices of House Majority Leader Paul Ryan, Minority Leader Nancy Pelosi, and Representative G.K. Butterfield, chair of the Congressional Black Caucus.
— ColorOfChange.org (@ColorOfChange) November 13, 2015