WASHINGTON, D.C. -

The bulletin connected with indirect auto financing issued by the Consumer Financial Protection Bureau last March could be receiving a significant makeover if a measure working its way through the U.S. House continues to move forward.

In what the National Automobile Dealers Association called a rare show of bipartisan cooperation, officials recapped that the House Financial Services Committee sought to turn back an effort by the CFPB to eliminate dealers' flexibility to discount the interest rate offered to vehicle buyers.

The NADA, a vocal advocate for the legislation, applauded the committee’s action. NADA explained that H.R. 4811, introduced this week by Rep. Marlin Stutzman would rescind the bureau’s 2013 auto finance guidance and inject transparency and safeguards into the guidance-writing process.

“If the CFPB had the benefit of the public's perspective before issuing its auto lending guidance, it would have learned that its changes would likely hike car buyers’ monthly payments and limit access to credit, especially for the marginally creditworthy,” said Ivette Rivera, NADA’s vice president of legislative affairs.

The Guidance Transparency Act bill passed the committee on a bipartisan vote of 35-24 with Democratic Reps. Joyce Beatty of Ohio, Steven Horsford of Nevada and David Scott of Georgia supporting the bill.

“The CFPB has repeatedly chosen to issue guidance in lieu of following a formal rule making process unlike their counterparts at other federal agencies. Notice and opportunity for public comment are critical in the development of good public policy,” the Financial Services Roundtable said in a letter to the committee prior to the vote.

Though the bill would rescind the 2013 auto finance guidance, NADA indicated that the CFPB can reissue it but only with greater transparency and public review.

Joining NADA, the Alliance of Automobile Manufacturers, the American International Automobile Dealers Association (AIADA), American Financial Services Association (AFSA), Recreation Vehicle Industry Association (RVIA), and the Recreation Vehicle Dealers Association (RVDA) sent a letter of support to the committee for the Guidance Transparency Act prior to the vote.

“The industry has made considerable efforts to work with the CFPB to identify and address any potential problems with indirect auto financing,” the organizations wrote. “Discrimination in any market has no place in society, and we fully support efforts by the CFPB and other federal agencies to eliminate it. We stand ready to work with the CFPB and its sister agencies to eliminate disparate impact risk.

“If there had been an opportunity to review and comment on the CFPB’s auto guidance before it was issued, we believe constructive solutions could have been offered that would effectively address actual disparate impact risk, provide certainty for the regulated community and preserve competition for consumers,” they continued.

“CFPB director Richard Cordray stated in testimony before a Senate committee last November that he would ‘agree with some of the criticism (of the auto finance guidance)’ and that he’d ‘like to have a little more openness and transparency.’ H.R. 4811 promotes such openness and transparency,” the organizations went on to say.

Rivera called on dealers to build support for H.R. 4811.

“Dealers are strongly urged to call their House members to ask them to cosponsor the Guidance Transparency Act (H.R. 4811). Strong bipartisan support is critical for the next step in the process, which is a vote by the full House,” Rivera said.

NADA added that Dealers are urged to call their representative to ask them to co-sponsor H.R. 4811, the Guidance Transparency Act. Congress can be reached through the Capitol Switchboard at (202) 225-3121.