Capito joins fellow Republicans in demanding answers on new auto finance rule

WASHINGTON DC – U.S. Senators Shelley Moore Capito (RW.Va.), Cynthia Lummis (R-Wyo.), John Thune (RS.D.), Todd Young (R-Ind.), Mike Lee (R-Utah), and Dan Sullivan (R-Alaska) today sent a letter to Federal Trade Commission (FTC) Chairman Lina Khan demanding answers on the FTC’s proposed rule regarding the motor vehicle dealer financing model . The proposed changes could negatively impact car dealerships across the country as well as those looking to purchase a vehicle.

“This proposed rule would fundamentally change the way vehicles are retailed in America. If implemented, this proposal would confuse customers, lengthen the transaction time to purchase a vehicle, limit consumer choice, increase red tape and impose burdensome new record-keeping requirements on small businesses. . More troubling, the FTC appears to have conducted no consumer testing to determine whether its new regulatory regime would work in practice,” the senators wrote.

FTCs proposed rule, published in the Federal Register on July 13, 2022, would create burdensome new reporting requirements for automakers that provide direct financing to their customers. Additionally, the FTC gave no notice of this proposed rulemaking and only allowed a 60-day comment period for a rule that will fundamentally alter a trillion-dollar industry.

Read the full letter here.

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