McLEAN, Va., and WASHINGTON, D.C. -

Four industry associations all raised various concerns on Tuesday about the consent order released by the Consumer Financial Protection Bureau and Department of Justice involving American Honda Finance Corp.

To recap, along with paying $24 million in restitution, Honda’s captive is being instructed to restrict dealer markup to 125 basis points or lower, depending on the length of the vehicle installment contract.

Leaders of the National Automobile Dealers Association (NADA), the National Association of Minority Automobile Dealers (NAMAD) and the American International Automobile Dealers Association (AIADA) all chimed in through a statement sent to Cherokee Media Group’s Auto Remarketing and SubPrime Auto Finance News.

“Today’s government-imposed order will hamstring the ability of thousands of consumers to negotiate lower interest rates with their local auto dealership,” NADA chairman Bill Fox said.

“This enforcement action artificially constrains the right of consumers to benefit from interest rate reductions of up to 1 percent of the APR on their next auto loan," Fox continued.

NAMAD president Damon Lester emphasized the prospects potential buyers should expect when entering the showroom.

“Every person deserves to be treated honestly and fairly when purchasing and financing their next car or truck — no exceptions and no excuses,” Lester said.

“Today’s restriction of consumer rights is entirely unnecessary because a better alternative exists — the Fair Credit Compliance Policy & Program recommended by our associations,” Lester continued. “That alternative, which is modeled on prior Department of Justice consent orders, fully addresses fair credit concerns without displacing the ability of consumers to obtain discounted rates.”

AIADA chairman Brad Hoffman cautioned about the ramifications of Tuesday’s development.

“There’s no getting around the fact that this enforcement action is going to reduce the savings consumers depend on when financing a new vehicle,” Hoffman said.

“Everyone in our industry is mystified as to why the government continues to overlook its own common-sense approach in favor of the anti-consumer methods forced on Honda Finance,” Hoffman went on to say.

Chris Stinebert, president and chief executive officer American Financial Services Association, took a different approach when assessing what the CFPB and DOJ released.

“While AFSA does not comment on the specific details of individual consent orders or business practices, the association remains concerned that the Consumer Financial Protection Bureau has not made any adjustments to the flawed methodology it uses for alleging consumer harm,” Stinebert said in a statement.

“The association and its members remain dedicated to treating all consumers honestly and fairly, and ensuring they have access to affordable credit,” he continued. “AFSA believes that consumers deserve the right to negotiate the best deal when financing a vehicle.”