Because no one's ever been ripped off during a car purchase, U.S. Sen. Sam Brownback of Kansas wants to exempt automobile dealers from new consumer protection rules.
The Wall Street Journal reports that Brownback plans to introduce an amendment to the financial overhaul bill.
The National Automobile Dealers Association cheers Brownback's effort. The lobby says car loans did not create the credit meltdown. The industry also notes that the banks that underwrite and service car loans would be subject to the new Bureau of Consumer Financial Protection.
The White House wants auto dealers to be governed by the new rules. As The Pitch documented in a 2003 story about Neil's Finance Plaza, dealers have methods of charging $13,475 for Grand
Ams with 100,000 miles on them.
The Pentagon supports the move to place car sales under the authority of the consumer protection bureau.
Youth and guaranteed paychecks open up military personnel to abusive lending
practices. Defense officials are making a national-security argument, equating the financial readiness of troops and their families to mission readiness.