This 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.
On April 10, 2018, Sen. Pat Toomey (R-PA), “at a Washington conference hosted by the Independent Community Bankers of America,” said he was confident that Congress would “act soon to repeal CFPB restrictions on auto lending.” “‘I know the clock runs out and I think we have the votes to repeal it,'” said Toomey. “‘So I think we’ll do it.” [Zachary Warmbrodt, “Toomey confident CFPB auto-lending safeguard will be repealed,” Politico Pro, 04/10/18]
Why Is He So Confident? Meet Emma Doyle: Former Toomey Staffer Turned Auto Industry Lobbyist Turned Mulvaney CFPB Staffer.
- Emma Doyle worked for Sen. Toomey on Dodd-Frank and financial services issues which likely included auto lending. From 2011 to 2013, OMB Chief of Staff and CFPB detailee Emma Doyle worked for Sen. Toomey where she assisted the “Senior Financial Services Counsel with [a] policy portfolio” that included “financial services” and “Dodd-Frank oversight” among others. Until 2017, Doyle’s husband also worked for Toomey. [Legistorm Profile for Emma Doyle, accessed 12/05/17 and Linkedin Profile for Brett Doyle, accessed 12/06/17]
- On March 21, 2013, the Dodd-Frank Act-established CFPB issued a bulletin in an attempt to protect consumers from “potentially discriminatory markups in auto lending.” [Press Release, “CFPB to Hold Auto Lenders Accountable for Illegal Discriminatory Markup,” 3/21/13.]
- After working for Toomey but before working for Mulvaney at OMB/CFPB, Doyle was a lobbyist for Ford Motor Co. on bills that would gut the CFPB’s auto lending discrimination protections. Immediately prior to working for Mulvaney at OMB and now the CFPB, Doyle was a lobbyist for Ford Motor Company where she lobbied the House and Senate on multiple bills, including two bills which would have nullified the CFPB bulletin protecting consumers from discriminatory auto lending practices. Mulvaney’s CFPB now says it is “studying” this issue.”[Legistorm Profile for Emma Doyle, accessed 12/05/17; Q3 2014 Lobbying Report for Ford Motor Company, 10/17/14; Q4 2014 Lobbying Report for Ford Motor Company, 01/20/15; HR.4811 – Bureau Guidance Transparency Act, 113th Congress, introduced 06/09/14; and H.R.5403 – Reforming CFPB Indirect Auto Financing Guidance Act, 113th Congress, introduced 09/08/14.]
- Throughout her lobbying career, Emma Doyle lobbied the House and Senate on the Dodd-Frank Act, which her employer told shareholders could “impose significant additional costs” on the company. [Danielle Douglas, “CFPB proposes rule to supervise large auto finance companies,” The Washington Post, 09/17/14; Q1 2014 Lobbying Report for Ford Motor Company, 04/25/14; Q3 2014 Lobbying Report for Ford Motor Company, 10/17/14; Q4 2016 Lobbying Report for Ford Motor Company, 01/19/17; Ford Motor Company, Form 10-K, SEC, 12/31/16.]
- Ford Moto Company identified the CFPB’s auto lending discrimination protections as something that would “adversely affect” auto financing companies. In fact, in their 2015 Form 10-K, Ford Motor Company cited the CFPB’s 2013 bulletin protecting consumers from auto lending discrimination as an example of an action which could “increase the costs of, impose additional restrictions on, or otherwise adversely affect companies in the automotive finance business” including companies such as Ford Credit. [Form 10-K, SEC, 12/31/2015]
- In an effort to undermine the CFPB, Toomey asked the GAO to review the burea’s new guidance on discriminatory auto lending practices – the controversial result was far-reaching. In March 2017, Sen. Toomey asked the Government Accountability Office (GAO) to review whether the CFPB’s bulletin protecting consumers from discriminatory auto lending practices was a ‘rule’ within the scope of the Congressional Review Act (CRA). On December 5, 2017, the GAO put out a legal opinion, saying they believed the bulletin constituted a “rule,” opening it up to be overturned by CRA legislation in Congress. [Barbara S. Mishkin & Peter N. Cubita, “GAO determination that leveraged lending guidance is subject to CRA could foreshadow similar fate for CFPB indirect auto finance guidance,” Ballard Spahr LLP, 10/26/17 and “GAO Finds that CFPB’s Indirect Auto Lending Guidance Is a ‘Rule’,” ABA Banking Journal, 12/05/17.]
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