Four PA Dems Voted to Nullify Key Consumer Financial Protection Bureau Regulation for Banks and Car Dealers

Congressmen Brendan Boyle, Bob Brady, Matt Cartwright and Mike Doyle joined 84 Democrats and 244 Republicans to shut down a key Consumer Financial Protection Bureau regulation that prevents banks and car dealerships issuing higher interests rates to Black, Latino and Asian Americans than their white counterparts.

The Huffington Post reports:

The Consumer Financial Protection Bureau issued regulatory guidance in 2013 instructing companies on how to cope with this phenomenon. Since the markup practice tends to result in overcharging borrowers of color, the CFPB recommended that banks and dealerships ditch the practice. If they didn’t, however, they needed to ensure that borrowers with similar credit profiles weren’t receiving different interest rates due to their race or national origin.

Since issuing the guidance, the CFPB has taken action against Honda and Ally Bank for overcharging borrowers of color, forcing them to return more than $100 million to their customers.

As noted above, this regulation has already forced Honda and Ally Bank to return $100 million to minority customers.  Naturally, the bill to kill this legislation was lobbied by big banks and auto dealers.  Pennsylvania’s only minority Congressman, Chaka Fattah, voted against the bill.  Read more by clicking link posted above.

About Sean Kitchen 584 Articles
Assistant Editor of the Raging Chicken Press and living in Harrisburg pursuing journalistic opportunities. You can send tips to SeanKitchen@RagingChickenPress.org and reach me on twitter at @RCPress_Sean!
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