Consumers looking to buy a new car while consolidating debt and in need of financial help may be disappointed by a new bill being considered that could deal a blow to auto financing.
According to the National Automobile Dealers Association, a financial regulation bill that is scheduled to be considered by the U.S. Senate would create a Bureau of Consumer Financial Protection that would have control over dealer-assisted financing and commissions.
The effects of the bureau would lead to a new set of regulations on auto dealers that could complicate the financial help they can offer for consumers who need assistance in order to purchase a new car.
"Adding another layer of regulation will reduce availability of credit and increase costs to consumers," said Ed Tonkin, chairman of NADA. "Wall Street caused the financial meltdown, not local auto dealers on Main Street."
Sam Brownback, a Republican Senator from Kansas, is attempting to adjust the bureau by sponsoring an amendment that would exempt the auto industry from its authority. The so-called Brownback Amendment is scheduled to be considered by the Senate as well.