President Obama is seeking to form a new agency that will oversee consumer lending for mortgages, personal loans and auto loans. This agency will provide consumer protection against many of the deceptive practices that consumers fell victim to causing the economy to crash. While this sounds like a good idea car dealers around the nation are not very happy with their inclusion to the agency. Car dealers feel that their finance businesses are already covered by federal and state rules and do not need further regulations. They also warn that a new bureau would inevitably limit credit to consumers, especially those with less than perfect credit scores.
President Obama feels differently about the inclusion of car dealers into this new agency. Obama believes that if we were to leave auto dealers out of the bill this will allow them to continue deceptive practices such as inflating rates, inserting hidden fees into the fine print of paperwork, and including expensive add-ons that catch purchasers by surprise.
I can understand why auto dealers would not want to be included into this new agency. The rules and regulations brought forth by this new agency would definitely limit any leeway they may have when it comes to issuing auto loans. However, I do feel that they should be included into this agency to offer more protection to consumers. While some individuals with poor credit might have a harder time securing an auto loan in the long run I do believe this agency will be a benefit for everyone else. The last thing we would want to happen is have another economic crisis because of deceptive practices by lenders.
By offering more protection for consumers looking for personal loans they know that they will not be entering into a loan that they can not afford. I think it is extremely important that auto lenders be included in this agency so that they can no longer try to take advantage of some people by placing them in high interest loans that they really can not afford. I do not think most auto dealers have the consumer’s best interests in mind when making a sale and helping someone finance a car. Many times these auto dealers are out to make as much money as possible for themselves and will do so at the expense of their customer.