DETROIT — The National Automobile Dealers Association revealed some insights into the Federal Trade Commission's Dealer Roundtable yesterday.

The group said its representatives were on hand during the event in Detroit to highlight the importance of dealer-assisted financing.

The series of roundtables were set up to help the FTC examine consumer protection issues related to five areas of vehicle sales and leasing.

The roundtables are designed to help the agency decide if it needs to exercise the authority it will soon assume under the Dodd-Frank Wall Street Reform and Consumer Protection Act to issue rules prohibiting unfair and deceptive acts or practices (UDAP) by motor vehicle dealers under the procedures contained in the Administrative Procedures Act.

The FTC currently can only issue UDAP rules under the more robust procedures contained in the Magnusson Moss Federal Warranty Act, according to NADA Regulatory Affairs.

NADA was represented on each of the panels by dealer, ATAE and attorney representatives that specialize in each of the subject matter areas.

During the discussions, the NADA team — led by NADA dealership operations chairman and North Carolina director Dave Westcott — made a compelling case that the problems identified by consumer group representatives on the panels are (i) not representative of the industry and therefore lack the prevalence necessary to justify the imposition of a new rule, and (ii) already may be addressed through an array of consumer remedies that exist under current federal and state law, according to NADA Regulatory Affairs.

Most importantly, the NADA representatives explained in detail the extraordinary benefits that optional dealer-assisted financing provides to millions of consumers, including how dealers' access to multiple finance sources and their efficient pricing allows dealers to (i) routinely offer consumers very competitive rates and (ii) in many cases, secure financing for "unbanked" consumers who otherwise would not have the means to obtain the transportation necessary to secure employment, the NADA Regulatory Affairs division reported.

"Even when dealer-assisted financing is not selected by consumers, its mere presence helps to create an intensely competitive market that significantly disciplines the rates that other finance sources will offer to consumers," said Andy Koblenz, NADA vice president of Legal and Regulatory Affairs.

In addition to the oral information supplied by the NADA representatives, NADA filed with the FTC preliminary written comments that summarize the group's arguments on the issues.

NADA Regulatory Affairs will continue to monitor and respond to additional FTC activity concerning this initiative, officials concluded.