U.S. News


Trump Eliminates Federal Auto Lending Anti-discrimination Guidelines

Research shows auto lenders often charge black and Hispanic customers higher interest rates than white customers with similar credit profiles.
Posted at 10:23 PM, May 21, 2018

President Donald Trump just repealed federal guidelines meant to prevent auto lenders from charging minorities higher interest rates, or dealer markups.

Trump signed a resolution to get rid of the 2013 Consumer Financial Protection Bureau guidelines on Monday. The Senate approved the resolution last month along Republican party lines.

Research shows black and Hispanic customers are often charged higher interest rates on car loans than white customers who have similar credit profiles.

Then-CFPB Director Richard Cordray instituted the rule saying, "Consumers should not have to pay more for a car loan simply based on their race."

Current CFPB acting Director Mick Mulvaney called the 2013 rules "misguided" and said he's "heartened" lawmakers "corrected this instance of Bureau overreach."

The change means dealers will now be able to assign interest rates on car loans at their own discretion.