Wednesday, June 23, 2010

Why should car dealers be exempt?

Here's a great piece from Politico that shows the deceptive practices car dealers often use to separate consumers from their money, and argues these dealers should not be exempted from common-sense rules. .

.. Dealers argue that they should not be regulated by the new agency because they are not to blame for the economic crisis. But that argument misses the point.

The bill is intended to prevent the next economic crisis — not the last one. And if car dealers are not included, they may indeed add to future instability.

Like the subprime mortgage loans that triggered the last crisis, car loans are often securitized, subject to many of the same laws that failed to prevent the subprime fiasco, and pervasive throughout the country.

While mortgage brokers received kickbacks from lenders for steering borrowers into higher interest loans, so auto dealers have been rewarded for deceptive, anti-consumer behavior. ...

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