WASHINGTON, D.C. -

Amid its efforts to emphasize the positives of dealer-assisted financing to the Federal Trade Commission as regulators mull over taking further consumer finance protection measures, the National Automobile Dealers Association appears to have at least one ally in the legal world.

Tom Hudson, one of the founding partners of the Hudson Cook law firm that provides the auto and finance industries with legal compliance services, told Auto Remarketing that the consumer advocates pushing these extra protection measures seemingly brush aside the benefits that dealer financing can offer consumers.

“The consumer advocates seem so fixated on eliminating dealer revenue from the F&I department that they are willing to ignore the fact that dealer financing is frequently less expensive than the alternatives and that it is always more convenient,” Hudson said.

“They are particularly incensed that dealers have discretion in determining finance rates, and evidently will not be content until they convince the regulators to prohibit any such discretion,” he continued.

“And they assert these arguments despite the dearth of empirical evidence supporting them. If the Federal Trade Commission does what I expect it to do, it won’t buy into the consumer advocates’ arguments without such evidence,” he added.

Hudson was echoing much of what NADA stressed in a recap of the final Motor Vehicle Dealer Roundtable held by the FTC in Washington, D.C., earlier this month.

According to NADA, the discussion delved into “alleged misrepresentations and other misconduct” in leasing and educating consumers and businesses.

The roundtable also examined “alleged abuses” by dealers that hurt consumers as well as “widespread dealer conduct” that while technically legal could have negative ramifcations for consumers.

The FTC is trying to determine whether it needs to take any measures — including rulemaking, enforcement and consumers/business education — and what steps it should take if it decides to move forward.

The most recent roundtable follows two previous events in Detroit and San Antonio. At all three roundtables, NADA was on hand to be the voice of dealer-assisted financing and to offer “extensive information to correct and rebut a series of misstatements about various dealer practices,” officials noted.

“NADA also underscored that, despite repeated requests for empirical information from the FTC, the consumer group allegations of dealer misconduct were anecdotal and unsupported by current and reliable data demonstrating that they are widespread,” they emphasized.

NADA insisted that it will continue to be on the forefront of this issue and emphasize the benefits consumers gain from dealer-assisted financing.

“NADA will also continue to stress to its members the need to keep current with the full range of federal and state legal requirements governing their operations,” officials added.