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Financial reform and car dealers

June 29, 2010

How in the name of all that’s holy did US auto dealers get themselves exempted from the financial reform bill? A car is the 2nd largest purchase most Americans will ever make, and most of us finance that purchase.

Auto dealers made every argument they could think of to get a loophole built into the new financial reform legislation for themselves:

“we don’t defraud people, we just set up the financing and turn it over to bigger lenders”  (only 1/2 true; auto dealer AutoNation paid out over $2.5million in just two fraud cases in California, filed for actions taken by the company in 2001 and 2010.

“our services don’t pose a systemic risk to the US economy; nobody’s talking about an auto bubble” (that’s beside the point, dipshits. The point is America has become a place where very few people have almost all the money. Those of us without much money are sick of you Richie Rich types screwing us at every turn.)

and again, the “we don’t defraud our customers” argument (yeah right. then why so many whistle-blower lawsuits from former employees? including one suit that alleges a dealership’s sales desk “frequently and systematically” falsified the income on customers’ credit applications, creating fake W-2 and 1040 tax forms) (quote at the end from a PublicIntegrity.org article)

 Maybe these auto dealers and their lobbyists think that if they talk long enough we’ll all get confused and forget why automobile loans should be regulated by the new Consumer Protection bureau?  Like I said in the lede: a car is the 2nd largest item most Americans ever own, and most of us finance that purchase. Simple.

File this in drawer marked They Kept Talking, Hoping it Would Make Us Stupid.

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