Senate Poised to Gut CFPB Consumer Protections from Discriminatory Auto Lending

Co-Sponsors Took At Least $5.1 Million from Auto Industry – Auto Loan Markups Have Extreme Racial Disparities in States of Co-Sponsors

WASHINGTON, D.C. – The U.S. Senate could vote this week on Senate Joint Resolution 57 which would repeal guidance from the Consumer Financial Protection Bureau (CFPB) that protects consumers from discriminatory auto lending practices. Co-sponsors of the legislation have taken at least $5,185,162 from the auto industry while hard data shoes enormous racial disparities in auto loan markups in their respective states.

“These senators hope no one will call them out for taking hundreds of thousands of dollars from the auto industry and then turning around and gutting the CFPB’s guidance protecting consumers from discriminatory auto lending markups,” said Karl Frisch, executive director of the consumer watchdog organization Allied Progress.

He continued, “Auto dealers are actively discriminating against people of color. They have been caught routinely inflating interest rates paid by black Americans to levels far exceeding that of their white clientele. This discrimination is pervasive and the CFPB’s guidance would help to end it. Unfortunately, the auto industry is in the driver’s seat in the Senate and people of color are the ones being taken for a ride.”

Last week, Sen. Pat Toomey (R-PA) told a banking trade group that he was confident that Congress would “act soon to repeal CFPB restrictions on auto lending” that protect consumers from discrimination. Why was he so confident? In addition to the Senate push on the issue, perhaps he was confident because his former staffer who worked on these issues and became a lobbyist for Ford Motor Co. on these issues, now works for Mulvaney at the CFPB.

Numbers the Co-Sponsors Don’t Want Us to See

In addition to campaign finance data, National Consumer Law Center (NCLC) notes, “statistically significant racial disparities were found in every state with sufficient data and in every region of the country. Disparities were also found for Hispanics on a national level, but Hispanic origin was not coded on enough loans to analyze state by state.”

Sen. Jerry Moran (R-KS)

  • Moran is the lead sponsor of S.J.Res.57, “a resolution under the Congressional Review Act (CRA) to overturn the CFPB’s 2013 auto finance guidance.” Sen. Moran has received $225,149 in campaign contributions from the automotive industry over the course of his congressional career. [S.J.Res.57, 115th Congress, 03/22/18; Barbara S. Mishkin, “CRA resolution introduced to overturn CFPB auto finance guidance,” Ballard Spahr LLP, 03/26/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $315
      • White Borrower: $226
      • Black Over White Increase: 139%

Sen. Roy Blunt (R-MO)

  • Blunt, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $890,073 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; [Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $429
      • White Borrower: $233
      • Black Over White Increase: 184%

Sen. John Boozman (R-AR)

  • Boozman, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $105,471 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Honda
      • Black Borrower: $479
      • White Borrower: $395
      • Black Over White Increase: 121%

Sen. Shelley Moore Capito (R-WV)

  • Moore Capito, a cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $286,249 from the automotive industry over the course of her congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. Tom Cotton (R-AR)

  • Cotton, a cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $124,181 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Honda
      • Black Borrower: $479
      • White Borrower: $395
      • Black Over White Increase: 121%

Sen. Mike Crapo (R-ID)

  • Crapo, a cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $178,371 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. Mike Enzi (R-WY)

  • Enzi, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $84,763 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $309
      • White Borrower: $116
      • Black Over White Increase: 266%

Sen. Orrin Hatch (R-UT)

  • Hatch, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $315,950 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. Dean Heller (R-NV)

  • Heller, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $351,694 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. John Hoeven (R-ND)

  • Hoeven, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $75,350 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. James Inhofe (R-OK)

  • Inhofe, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $326,000 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Primus (Ford)
      • Black Borrower: $1,005
      • White Borrower: $734
      • Black Over White Increase: 137%
    • Lender: GMAC
      • Black Borrower: $488
      • White Borrower: $216
      • Black Over White Increase: 226%
    • Lender: Honda
      • Black Borrower: $1,056
      • White Borrower: $624
      • Black Over White Increase: 169%

Sen. Johnny Isakson (R-GA) 

  • Isakson, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $399,649 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $626
      • White Borrower: $288
      • Black Over White Increase: 217%

Sen. Ron Johnson (R-WI)

  • Johnson, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $275,500 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Primus (Ford)
      • Black Borrower: $1,041
      • White Borrower: $156
      • Black Over White Increase: 667%
    • Lender: GMAC
      • Black Borrower: $714
      • White Borrower: $144
      • Black Over White Increase: 496%
    • Lender: Honda
      • Black Borrower: $1,045
      • White Borrower: $477
      • Black Over White Increase: 219%

Sen. John Kennedy (R-LA)

  • Kennedy, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $234,716 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Primus (Ford)
      • Black Borrower: $810
      • White Borrower: $378
      • Black Over White Increase: 214%
    • Lender: GMAC
      • Black Borrower: $803
      • White Borrower: $290
      • Black Over White Increase: 277%
    • Lender: Honda
      • Black Borrower: $1,285
      • White Borrower: $731
      • Black Over White Increase: 176%

Sen. James Lankford (R-OK)

  • Lankford, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $142,980 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Primus (Ford)
      • Black Borrower: $1,005
      • White Borrower: $734
      • Black Over White Increase: 137%
    • Lender: GMAC
      • Black Borrower: $488
      • White Borrower: $2216
      • Black Over White Increase: 226%
    • Lender: Honda
      • Black Borrower: $1,056
      • White Borrower: $624
      • Black Over White Increase: 169%

Sen. Jim Risch (R-ID)

  • Risch, a cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $52,540 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. Pat Roberts (R-KS)

  • Roberts, a cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $217,800 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18;  Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $315
      • White Borrower: $226
      • Black Over White Increase: 139%

Sen. Mike Rounds (R-SD)

  • Rounds, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $74,150 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]

Sen. Tim Scott (R-SC)

  • Scott, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $195,164 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics accessed 04/13/18]
    • Lender: Primus (Ford)
      • Black Borrower: $812
      • White Borrower: $405
      • Black Over White Increase: 200%
    • Lender: GMAC
      • Black Borrower: $598
      • White Borrower: $245
      • Black Over White Increase: 244%
    • Lender: Honda
      • Black Borrower: $969
      • White Borrower: $641
      • Black Over White Increase: 151%

Sen. Pat Toomey (R-PA)

  • Toomey, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $366,454 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics, accessed 04/13/18]
    • Lender: GMAC
      • Black Borrower: $339
      • White Borrower: $173
      • Black Over White Increase: 196%

Sen. Roger Wicker (R-MS)

  • Wicker, an original cosponsor of the CRA to overturn the CFPB’s auto-lending rule, has received at least $262,958 from the automotive industry over the course of his congressional career. [S.J.Res.57 Cosponsors, 115th Congress, 03/22/18; Automotive Industry, Center for Responsive Politics, accessed 04/13/18.]
    • Lender: Primus (Ford)
      • Black Borrower: $858
      • White Borrower: $493
      • Black Over White Increase: 174%
    • Lender: GMAC
      • Black Borrower: $576
      • White Borrower: $252
      • Black Over White Increase: 229%
    • Lender: Honda
      • Black Borrower: $789
      • White Borrower: $583
      • Black Over White Increase: 135%

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