“The Dodd-Frank economy does not work for working people. Bureaucratic red tape and Washington mandates are not the answer. The Financial Services Policy Implementation team will be working to dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation.”
One of these actions is the use of an algorithm that attempts to estimate whether or not a minority individual was discriminated against based on the price they paid for their vehicle. Many disagree with this practice;
“To the auto lending industry, it’s a tool used to imply that it allows racist practices, a damning claim that lenders think ought to be backed up with more than a math equation.
‘You’re using an imperfect tool to result in some pretty serious headlines,’ said Scott Pearson, an attorney who represents lending firms. ‘That’s why they don’t like it. They think it’s unfair.’”
If the Dodd-Frank Act is dismantled, or even reorganized, it could have a positive impact on dealerships. Aside from how it directly impacts dealerships with having to pay out to individuals who could have potentially been discriminated against, this law has also made it more difficult for banks to loan money (which could be good or bad depending on your perspective). If some of the restrictions are lifted, making lending and debt collection more affordable, banks will have more money to loan to potential car buyers.
So, what is to become of the Dodd-Frank Act and the CFPB? Only time will tell.